RICHMOND- Apple REIT Seven, Apple REIT Eight and Apple REIT Nine made separate regulatory filings on Thursday alerting shareholders that they are considering a merger. (Hat tip to Investment News for spotting the filing). According to the respective filings, the REITs said their boards had authorized the potential consolidation. No time line for the decision was provided.
The Apple REIT family of companies has a broad array of interests – successful interests as the recent sale of Apple REIT Six to BRE Select Hotels Corp, an affiliate of Blackstone Real Estate Partners VII, earlier this year for $1.2 billion indicates.
Earlier this month Apple REIT Ten indicated it was planning to invest $100 million in oil and gas via another regulatory filing. The REIT invested in an LLC called Cripple Creek Energy that was formed to acquire, develop and dispose of oil and gas leasehold acreage as well as oil, gas and other minerals.
CCE does not currently have any material assets, according to the regulatory filing the REIT made, however it holds options to acquire mineral rights and will use the proceeds from Apple REIT's investment to exercise these options and develop the leasehold acreage.
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