Comrit Investments 1 LP made a tender offer to acquire an additional 5.05% stake in CNL Healthcare Properties, Inc. for $39.5 million.
October 21, 2021
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Comrit Investments 1 LP made a tender offer to acquire an additional 5.05% stake in CNL Healthcare Properties, Inc. (OTCPK:CHTH) for $39.5 million on October 21, 2021. Under the offer, Comrit Investments will acquire up to 8.785 million shares of CNL Healthcare Properties' common stock at a purchase price equal to $4.50 per share in cash. Any dividends paid after January 7, 2022, or such other date to which the offer may be extended, would be assigned by tendering shareholders to Comrit Investments 1 LP. Comrit intends to fund the acquisition out of its available cash on hand. The offer is not conditioned on any minimum number of shares being tendered. If more than 8.785 million shares are validly tendered and not withdrawn, Comrit will accept for purchase 8.785 million shares from tendering shareholders on a pro rate basis. The Offer resulted in the tender by shareholders, and acceptance for payment by Comrit Investments, of a total of approximately 345,982 Shares. Following the purchase of all of the tendered Shares, Comrit Investments will own an aggregate of approximately 1,271,110 Shares, or approximately 0.7% of the total outstanding Shares. The offer will expire on December 30, 2021, unless extended. The offer commenced on November 12, 2021 and will expire on January 7, 2022, unless extended.
Amos W. Barclay of Holland & Hart LLP acted as legal advisor to Comrit. Comrit retained Central Trade and Transfer, LLC (CTT) to facilitate the settlement of and payment for the tendered shares, which will act as agent for the tendering shareholders for the purpose of receiving payment from the Comrit and transmitting payment to tendering shareholders, for a fee in the amount of 2% of the aggregate purchase price, plus reimbursement for out-of-pocket expenses, as well as a $5,000 administrative fee.
CNL Healthcare Properties, Inc. is a real estate investment trust (REIT). The Company operates through a single segment, real estate ownership, which consists of owning, managing, leasing, acquiring, developing, investing in, and as conditions warrant, disposing of real estate assets. The Companyâs seniors housing investment portfolio consisted of interests in 70 properties, consisting of a geographically diversified portfolio of 69 seniors housing communities and one vacant land parcel. The types of seniors housing properties that the Company owns include independent and assisted living facilities, continuing care retirement communities and Alzheimerâs/memory care facilities. It has primarily leased its seniors housing properties to wholly owned CHP TRS Holding, Inc. (TRS) entities and engaged independent third-party managers to operate the properties. It is externally managed and advised by CNL Healthcare Corp.