Home News Resource Real Estate Opportunity REIT Launches Rescission Offer for California Residents

Resource Real Estate Opportunity REIT Launches Rescission Offer for California Residents

Resource Real Estate Opportunity REIT Inc., a publicly registered non-traded real estate investment trust, has launched a rescission offer and is offering to repurchase 711,274 shares of common stock from California residents who purchased the shares between June 8, 2017 and June 28, 2019 through the company’s distribution reinvestment plan.

Resource Real Estate Opportunity REIT Inc., a publicly registered non-traded real estate investment trust, has launched a rescission offer and is offering to repurchase 711,274 shares of common stock from California residents who purchased the shares between June 8, 2017 and June 28, 2019 through the company’s distribution reinvestment plan. The rescission offer will expire on November 25, 2019.

The company explained that the DRP shares were inadvertently not registered under California state securities laws, and the rescission offer is intended to address the compliance issue by allowing shareholders who qualify to sell those shares back to the REIT.

Stockholders who are eligible and choose to participate will receive the purchase price for the shares, which ranges from $10.26 to $10.94, plus 7 percent interest based on the initial purchase price, less any distributions received. Interest and distributions will be determined from the date the shares were purchased through the date that the rescission offer expires.

The shares subject to the rescission offer were validly issued under corporate law and DRP shares have at all times been registered under the federal securities laws, the company noted.

Resource Real Estate Opportunity REIT has a net asset value per share of $10.83, as of December 31, 2018. The company’s share redemptions program currently prices shares at $10.29 each, which is 95 percent of the NAV per share.

Resource Real Estate Opportunity REIT launched its initial offering in June 2010 and raised more than $633 million in investor equity before its closing in December 2013. The company’s property portfolio is comprised of 30 multifamily properties that were purchased for approximately $1 billion. The company continues to raise capital through its distribution reinvestment plan.

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