Everest REIT Investors I and II completed their tender offer to purchase up to 1.8 million shares of KBS Real Estate Investment Trust III common stock for $7.00 per share. The offer expired on April 14th and resulted in Everest purchasing 134,603 shares of the non-traded REIT for approximately $942,000.
In December 2016, the KBS REIT III board approved an estimated net asset value of $10.63 per share, as of September 30, 2016.
The REIT, which previously urged stockholders to reject the Everest offer, has a share redemption program that allows stockholders to sell their shares to the REIT in limited amounts in various percentages of NAV depending on the duration the shares are held. As of January 1st, there was $61.9 million available for eligible share redemptions in 2017.
Shares held by stockholders for at least one year can be redeemed for 92.5 percent of the most recent NAV, while those held for two, three and four years will be priced at 95 percent, 97.5 percent and 100 percent of NAV, respectively.
Everest currently owns 135,003 shares of KBS REIT III, or approximately 0.1 percent of the outstanding shares.
KBS Real Estate Investment Trust III, a non-traded real estate investment trust, went effective in October 2010 and closed in July 2015 after raising approximately $1.7 billion in investor equity. As of December 31, 2016, the company’s $3 billion portfolio was comprised of 28 office properties, one mixed-use office/retail property, and a multifamily joint venture project which is currently under construction.