Topic: How To Invest

Spinoffs, Takeovers and Special Situations Hotline – Friday, April 13, 2018

Article Excerpt

PURE MULTI-FAMILY REIT LP, $9.16, symbol RUF.UN on TSX Venture Exchange, is a Vancouver-based real estate investment trust that owns multi-family properties in seven different U.S. states, including Texas and Arizona. On April 5, 2018, the REIT rejected an all-cash offer for $7.59 U.S. per unit ($9.79 Cdn.) from Florida-based Electra America. That firm owns 59 multi-family properties in Texas and other southern U.S. states. The REIT declined the offer as being too low given what it sees as the value of its own property portfolio. At the same time, Pure Multi announced a strategic review of its business. That process could lead to the sale of the REIT at a price higher than Electra’s bid. Mostly due to acquisitions, Pure Multi’s revenue has risen sharply over the last few years. Its most recent acquisition was the November 29, 2017, purchase of a 230-unit building in Phoenix, Arizona, for $56.0 million. A little more than half of that is debt. The REIT’s revenue in…