Last week, an affiliate of Blackstone Group agreed to buy David Lerner & Associates' Apple REIT Six for $11.10 per share, through a combination of cash and preferred shares in the Blackstone entity. According to InvestmentNews, Apple REIT Six raised its capital from 2004 to 2006 at a price of $11.00 per share. Not knowing anything about this deal, but considering it was offered before the credit crisis and invested in hotels, one of the hardest hit asset classes, giving investors a breakeven price seems like a good deal to me.
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2 comments:
but aren't the investors locked in for another seven years before they have liquidity?
Investors get $9.20 per share in cash and $1.90 in new issue preferred stock with a seven-yr redemption.
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