MacKenzie Offers $16.50 Per Share of ARC’s American Finance Trust

MacKenzie Realty Capital Inc., a non-traded business development company, made a tender offer for up to 200,000 shares of common stock in American Finance Trust Inc. for $16.50. The offer equals 0.31 of the outstanding shares and expires on September 29, 2016. The company will pay $3.3 million if all 200,000 shares are tendered.

American Finance Trust, a publicly registered non-traded real estate investment trust sponsored by AR Global and formerly known as American Realty Capital Trust V, has 33,360 holders of record owning a total of 66.1 million shares. MacKenzie offered AFT shareholders $16.00 each in previous tender offer and currently owns nearly 16,500 shares in the non-traded REIT.

Shares of American Finance Trust were originally sold to investors for $25.00 each, prior to the close of the offering in October 2013. The REIT’s board of directors, which approved a net asset value of $24.17 per share in May 2015, recommended that shareholders reject the offer.

American Finance Trust’s portfolio consists of 459 office, retail, and distribution properties totaling 13.1 million square feet with a total purchase price of $2.2 billion. The portfolio is 100 percent leased with a weighted-average remaining lease term of 9.6 years.

MacKenzie Capital Management LP, a real estate investment management business based in Moraga, California, is the sponsor of MacKenzie Realty Capital and has specialized in the area of discounted real estate securities and asset management since its formation in 1982.

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