Summit Healthcare REIT Inc., a publicly registered non-traded real estate investment trust, sent a letter to shareholders recommending that they reject an unsolicited tender offer from MacKenzie Realty Capital.
MacKenzie, a publicly registered business development company, is offering to purchase up to 330,000 shares of Summit for approximately $1.34 per share. Summit’s most recent estimated net asset value per share is $2.53, as of December 31, 2016.
Summit urged shareholders to reject the unsolicited tender offer as it believes that “MacKenzie’s offer price is less than the current and potential long-term value of its shares.”
MacKenzie made similar unsolicited tender offers for Summit shares in March 2016 and September 2016.
Summit Healthcare REIT, which focuses on investing in senior housing facilities, closed its offering in November 2010 after raising $172 million in equity, according to Summit Investment Research. As of the second quarter of 2017, the company’s portfolio consisted of 10 properties that were purchased for a combined $68.9 million. The company also holds a minority interest in three investments vehicles that own a combined 21 properties.
Based in Moraga, California, MacKenzie Capital Management has specialized in discounted real estate securities and asset management since its formation in 1982.