MacKenzie Tenders Offer for Shares of Benefit Street Partners Realty Trust
MacKenzie Realty Capital Inc., a non-traded business development company, has offered to purchase up to 500,000 shares of Benefit Street Partners Realty Trust common stock for $12.05 per share, according to a filing with the Securities and Exchange Commission. Unless extended, the tender offer, which constitutes 1.58 percent of the outstanding shares, will expire on April 28th.
Benefit Street Partners Realty Trust is a publicly registered non-traded real estate investment trust formerly known as Realty Finance Trust. The REIT appointed Benefit Street Partners as its new advisor at the end of September 2016, replacing AR Global Investments – formerly AR Capital.
According to the offer documents, the REIT had nearly 16,700 holders of record owning a total of 31.7 million shares. Currently, MacKenzie and its affiliates do not own any shares of the company’s common stock, but will pay approximately $6.03 million if all 500,000 shares are tendered.
Benefit Street Partners Realty Trust sent a letter to stockholders recommending they reject the tender offer, stating that it is “substantially below the estimated net asset value per share of $20.05.” The offer price represents a 40 percent discount to the most recent NAV per share that was approved by the board in November 2016.
The REIT also noted that it currently offers a share repurchase program, and in January 2017, paid an average of $19.23 for nearly 473,806 shares repurchased from its stockholders.
Benefit Street Partners Realty Trust focuses on commercial real estate debt investments secured by income-producing properties and targets loans and securities – diversified by duration, geographic location, property type, ownership, and tenancy. The REIT commenced operations in November 2012 and raised $786 million in investor equity prior to closing the offering in January 2016. As of September 30, 2016, the company’s portfolio consisted of 73 loans and 7 CMBS investments.
