Cadim inc. and The Prime Group, Inc., the latter being an affiliate with Prime Group Realty Trust chairman Michael W. Reschke, is offering $14 per share for the REIT's common stock, which closed at $12.80 Thursday before soaring 12% Friday to $14.34.
However, the $219-million offer is viewed by some as too low, considering the REIT's most recent book value was $19.36. Prime Group Realty's portfolio includes Dearborn Center, a $350-million joint venture development more than 60% pre-leased a year before its scheduled completion, that is expected to come on line next year, boosting potential for future growth.
K Capital Partners, LLC sent a letter to Prime Group trustees calling the offer "grossly insufficient."
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