MacKenzie Realty Capital Initiates Tender Offer for Starwood REIT

MacKenzie Realty Capital Inc., a publicly registered non-traded real estate investment trust, has launched a tender offer to purchase up to 700,000 Class S Shares of Starwood Real Estate Income Trust for $17.50 per share. The offer was made, together with its affiliates and represents an approximate 24% discount to Starwood’s estimated net asset value of $22.94 as of May 31, 2024.

If successful in purchasing all such shares, MacKenzie would be investing over $12 million in Starwood at an attractive discount to its net asset value.

Earlier this year, MacKenzie made a similar mini tender offer for up to 1.25 million shares of CIM Real Estate Finance Trust common stock for $3.15 per share, less than half of the REIT’s then-estimated NAV. And last fall, MacKenzie made a mini tender offer to shareholders of Blackstone Real Estate Income Trust Class S shares for $9.27 per share, a 38% discount to BREIT’s then-estimated NAV.

Third-party offers, such as MacKenzie’s, are often rebuked by sponsor, as well as those looking for other secondary market options for investors looking for rapid liquidity.

Also this month, MacKenzie reiterated its intention to pursue a listing on the New York Stock Exchange-American once a trading history and public float is demonstrated. In March 2024, AltsWire reported that the REIT had suspended its dividend reinvestment and share repurchase programs in preparation for listing on the securities exchange.

The company reported total assets of approximately $226 million and total equity of approximately $107.7 million as of March 31, 2024. MacKenzie had approximately 13.3 million shares of common stock outstanding as of May 15.

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