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MacKenzie Offers $9.18 Per Share of Apple REIT Ten

MacKenzie Realty Capital Inc., a non-traded business development company, made a tender offer for up to 1 million shares of Apple REIT Ten common stock for $9.18 per share. The offer, which constitutes 1.13 percent of the outstanding shares, expires on June 14th.

The DI Wire recently reported that Apple REIT Ten, a non-traded real estate investment trust, and Apple Hospitality REIT Inc. (NYSE: APLE) announced their $1.3 billion merger agreement that is expected to close in the third quarter of 2016.

With respect to the merger agreement, shareholders will receive $1 and 0.522 shares of Apple Hospitality REIT for each share of Apple Ten. Yesterday, Apple Hospitality REIT closed at $18.69 per share, which would be the equivalent of $10.76 per share of Apple Ten stock.

In a letter to Apple Ten stockholders, MacKenzie noted that, “Over the past 52 weeks, APLE traded between $13.82 and $20.97 per share, at which prices the merger would have resulted in between $8.21 and $11.95 per Apple Ten share.”

MacKenzie currently owns 52,384.40 shares of Apple Ten REIT or 0.06 percent of those outstanding. The firm noted that the current purchase price is the highest it has offered for shares of the company and is nearly 75 percent higher than its last offer.

Apple REIT Ten had 23,000 holders of record owning a total of 88.2 million shares as of February 29, 2016.

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.

For more MacKenzie related news, visit their directory listing here.