Thomas Paine, the English-born revolutionary who became one of the founding fathers, like many today, had a different response to the idea that 'great minds think alike;' that is, "No, they don't". He expressed that opinion in the 1792 political pamphlet The Rights of Man, edition 2:
I do not believe that any two men, on what are called doctrinal points, think alike who think at all. It is only those who have not thought that appear to agree.”
So maybe the title for my article today is a tad misleading, and perhaps I should have used this version,
These REIT Investors Think Alike”
Of course I am referring to the recent news that Ladder Capital (NYSE:LADR) has received an unsolicited non-binding proposal letter from Related Fund Management, LLC, proposing to acquire all of the outstanding shares of Ladder for $15 per share through a two-step tender offer and merger process, subject to certain conditions.
As you may recall, I have been covering LADR for quite some time and back in March 2017 I explained the Ladder and Related’s “strategic" investment in which Related purchased $80 million of LADR stock from certain pre-IPO shareholders, including affiliates of TowerBrook Capital Partners and GI Partners.” At the time I wrote,
Related’s investment should provide LADR with much needed float and further diversify the base of shareholders in the commercial mortgage REIT. I am particularly happy to see Related make this investment, given the company’s deep experience in commercial real estate and success as a global luxury residential, retail, and mixed-use developer.”
I added,
I guess Ladder is no longer the “best kept secret” in New York City, at least as far as REIT investors are concerned. Related’s investment in the internally-managed commercial mortgage REIT should elevate the status of the REIT while also adding a new
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