Baltimore commercial real estate developer and investment management firm MCB Real Estate Wednesday sent a letter to the Board of Trustees of Whitestone REIT increasing the value of its proposal to $15 per share for acquisition of the company in an all-cash transaction.
Under the terms of the revised proposal, Whitestone shareholders would receive $15 per share in cash, representing a 14.5% premium to Whitestone’s share price as of June 3, the last trading day prior to the disclosure of MCB’s previous proposal, a 11.4% premium to Whitestone’s last trading share price, and a 61.8% premium to the Whitestone share price prior to the rumored Fortress proposal in October 2023. MCB’s proposal is not subject to any financing contingency.
MCB previously disclosed a proposal to acquire Whitestone for $14 per share in cash on June 3. Since then, Whitestone stock has notably underperformed its peers and is still trading at approximately the same value as when MCB submitted its previous proposal.
MCB has engaged Vinson & Elkins LLP as lead counsel in connection with the transaction. Wells Fargo is serving as financial adviser to MCB.
Founded in 2007, MCB Real Estate is a community-centric, privately held institutional investment management firm with a nationwide portfolio of $3 billion in assets under management totaling approximately 15 million square-feet of industrial, office, retail, mixed-use, multi-family and life sciences properties with almost four million square-feet in its development pipeline.