Everest REIT Investors Files $7.50 Tender Offer for Carey Watermark Investors Shares
Everest REIT Investors I, LLC, has offered to purchase up to 7,020,000 shares of common stock in Carey Watermark Investors Incorporated at a purchase price equal to $7.50 per share, without interest, upon the terms and subject to the conditions set forth in the Offer to Purchase dated February 11, 2019. Any dividends or distributions made after the expiration date (March 29, 2019), by the terms of the offer and as set forth in the Transfer Agreement, would be assigned by tendering shareholders to the purchaser.
Everest REIT Investors I, LLC, does not currently own any shares of Carey Watermark Investors Incorporated. There were 139,139,949 common shares outstanding as of September 30, 2018. The 7,020,000 shares sought in the Offer constitute about 5.0% of the outstanding shares. Consummation of the Offer, if all shares sought are tendered, would require payment by the purchaser of approximately $52,650,000 in aggregate purchase price, for which the purchaser has the capital available and committed, according to the SEC filing.
Carey Watermark Investors Incorporated reported an estimated net asset value per share as of December 31, 2017, of $10.41. During the nine months ended September 30, 2018, the REIT redeemed 2,874,936 shares of common stock, comprised of 713 redemption requests, at an average price of $9.90 per share. The REIT funded all redemptions ($28.5 million) during the nine months ended September 30, 2018, from the sale of shares of common stock pursuant to the DRIP ($33.0 million). The REIT redeemed 787,680 shares in Q3 2018, representing 0.56% of the weighted average shares outstanding for the quarter at an average price of $9.91 per share.
Carey Watermark Investors Incorporated is sponsored by W. P. Carey. As of September 30, 2018, the REIT had total assets of $2.31 billion and consolidated 23 hospitality properties with 6,288 rooms. It was making distributions at the annualized rate of 5.70% based upon the original offering price of $10.00 per share. The REIT raised approximately $1.188 million in its public offering which commenced in September 2010 and closed December 31, 2014.
Sources: SEC, Blue Vault
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