MacKenzie Realty Capital Inc., a non-traded business development company, made a tender offer for up to 500,000 shares of Apple REIT Ten common stock for $9.21 per share – its highest offer yet. The offer, which constitutes 0.57 percent of the outstanding shares, expires on August 19th. If all shares are tendered, MacKenzie would pay a total purchase price of $4.6 million.
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, upon shareholder approval.
With respect to the merger, Apple REIT Ten shareholders will receive $1.00 and 0.522 shares of APLE for each share of Apple Ten. As of July 20th, APLE closed at $20.09, which would equate to $11.48 per Apple Ten Share.
This is MacKenzie’s second Apple Ten tender offer in recent months. The previous offer of up to 1 million shares priced at $9.18 each, which concluded last month, resulted in the purchase of 258,911 shares by the BDC.
Apple REIT Ten had 23,000 holders of record owning a total of 87.6 million shares, according to a filing with the Securities and Exchange Commission. MacKenzie and its affiliates currently own 313,480 shares, or 0.36 percent of those outstanding.
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.