MacKenzie Capital Launches $11.39 Tender Offer for Inland Residential Shares

February 21, 2019

MacKenzie Capital Launches $11.39 Tender Offer for Inland Residential Shares

February 18, 2019 | James Sprow | Blue Vault

Entities controlled by MacKenzie Capital Management LP launched a tender offer to purchase up to 200,000 class A common shares of Inland Residential Properties at $11.39 per share.

The number of shares represents 9.26% of the multifamily-focused real estate investment trust’s outstanding shares.

The purchasers currently do not own any shares in the Oak Brook, Ill.-based company, and are expected to pay up to about $2.3 million if all the shares are tendered under the offer. The amount will be paid using their current working capital.

Related: Inland Residential Properties Trust Announces $16.06 Estimated NAV

The purchase offer will expire March 22, unless extended.

Inland Residential Properties Plan of Liquidation and Estimated Net Asset Value

Inland Residential Properties stockholders approved a plan of liquidation and dissolution of the company on December 20, 2018, including the sale of all or substantially all the assets of the company and the dissolution of the company. All outstanding shares of the company’s Class T common stock (“Class T Shares”) and Class T-3 common stock (“Class T-3 Shares”) were converted to shares of the company’s Class A common stock (“Class A Shares”) on January 23, 2019. The company paid an initial liquidating distribution on January 25, 2019 of $4.53 per share to the record holders of Class A Shares as of the close of business on January 25, 2019.

Related: The Interesting Case of Highlands REIT-Part II in a Series on InvenTrust Properties Corporation

To assist the board of directors of the REIT in establishing the estimated per share net asset value, Inland Residential Business Manager & Advisor, Inc., the Company’s business manager (the “Business Manager”), conducted an analysis, under which the Business Manager prepared an estimate of the total cash that may be distributed to the REIT’s stockholders as liquidating distributions. Based on the valuation analysis, the Business Manager estimated that the Liquidating Distributions Estimate is approximately $20.59 per Class A Share.

The Board determined the Estimated Per Share NAV by taking the Liquidating Distributions Estimate of $20.59 and reducing it by the Initial Liquidating Distribution of $4.53 per share. On that basis and after due consideration, on February 5, 2019, the Board unanimously approved an Estimated Per Share NAV as of February 1, 2019 equal to $16.06 per share based on 2,183,727.423 shares of Class A common stock outstanding on a fully diluted basis as of February 1, 2019.

The REIT’s previous estimated per share net asset value determination, as published on February 5, 2018, was $23.15 per Class A Share, $24.32 per Class T Share, and $23.55 per Class T-3 Share, each valued as of December 31, 2017. Adjusted for the initial liquidating distribution, the estimated NAV per share for its Class A shares would be $18.62.

Source:  SEC


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Matthew C. Strife
Blue Vault Services
April 11, 2016

Blue Vault's services are without question great resources for the review of the nontraded products offered.