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MacKenzie Offers $2.10 Per Share of InvenTrust Properties

MacKenzie Realty Capital Inc., a non-traded business development company, made a tender offer for 1 million shares of InvenTrust Properties Corp. common stock at $2.10 per share. The tender offer expires on December 31, 2015.

InvenTrust is a publicly registered non-traded real estate investment trust formerly known as Inland American Real Estate Trust. MacKenzie and its affiliates currently beneficially own 878,420.1 shares, or 0.1 percent of the outstanding InvenTrust shares.

MacKenzie sent InvenTrust shareholders a letter notifying them of the purchase offer, and suggested that they “guarantee their cash now.”

The potential buyers also mentioned the recent spin-off of Xenia Hotels & Resorts Inc. and the subsequent reduced distribution that followed the transaction. The MacKenzie letter stated, “Following the spin-off of its lodging portfolio in February, [InvenTrust] reduced its quarterly distribution to $0.03 per share, a 3 percent annualized rate on InvenTrust’s estimated value of $4 per share.”

The 1 million shares sought by MacKenzie constitute 0.12 percent of the outstanding shares. If all shares are tendered, it would require payment by MacKenzie of up to $2.1 million in aggregate purchase price, which they intend to fund out of their current working capital.

This is the second tender offer made by Mackenzie in one week. The DI Wire reported that the company increased its tender offer to $7.00 per share to purchase up to 1.3 million shares of Landmark Apartment Trust common stock.

Earlier this year, MacKenzie paid a special dividend to its investors that resulted largely from the sale of Apple Hospitality REIT (NYSE: APLE) stock acquired by MacKenzie via a tender offer prior to the listing of the formerly non-traded REIT’s shares on the New York Stock Exchange on May 18.

MacKenzie Capital Management LP, a real estate investment management business based in Moraga, CA, has specialized in the area of discounted real estate securities and asset management since its formation in 1982.

 



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