MacKenzie Affiliate Offers $0.17 Per Share of Highlands REIT

SCM Special Fund 3 LP, an affiliate of Mackenzie Capital Management, has offered to purchase up to 45 million shares of Highlands REIT common stock for $0.17 per share. The offer, which constitutes approximately 5.2 percent of the outstanding shares, expires on June 9th. The purchasers will pay nearly $7.7 million if all shares are tendered.

Highlands REIT is a non-traded real estate investment trust that was spun-off from InvenTrust Properties Corp. (formerly Inland American Real Estate Trust) in April 2016.

Earlier this year, the board of Highlands REIT approved an estimated per share net asset value of $0.35 per share, as of December 31, 2016. The current tender offer price of $0.17 per share is a 51.4 percent discount to the REIT’s NAV.

Highlands REIT had 171,553 investors that owned a total of 868.1 million shares as of March 27, 2017. SCM Special Fund 3 LP and its affiliates currently own approximately 2.9 million shares, or 0.33 percent of those outstanding. As of December 31, 2016, Highlands’ portfolio consisted of six office assets, two industrial assets, six retail assets, two correctional facilities, four parcels of unimproved land and one bank branch.

As reported by The DI Wire last month, IG Holdings Inc. canceled a similar tender offer for Highland REIT shares after they offered to purchase up to 44.1 million shares of the non-traded REIT for $0.17 each.

Based in Moraga, California, MacKenzie Capital Management has specialized in discounted real estate securities and asset management since its formation in 1982.

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