The Parking REIT Requests Withdrawal of $100 Million Offering
September 3, 2019 | James Sprow | Blue Vault
The Parking REIT Inc., a publicly registered non-traded real estate investment trust formed by the December 2017 merger of MVP REIT and MVP REIT II, on August 29 filed a request with the Securities and Exchange Commission to withdraw its pre-effective Registration Statement filed October 9, 2018.
The company originally filed a preliminary prospectus with the SEC to raise up to $100 million in a public offering. The offering was to be the REIT’s “first listed public offering.” In October filing, the Company stated: “We have applied to list our common stock on the NASDAQ Global Market under the symbol “PARK.” If our common stock is not approved for listing on the NASDAQ Global Market, we will not consummate this offering.”
The REIT planned to use proceeds from the offering to repay approximately $9.1 million in debt, and for general corporate and working capital purposes, including to acquire additional parking facilities.
From inception through June 30, 2019, the Company has paid approximately $1.8 million in cash distributions, issued 83,437 shares of its common stock as DRIP and issued 153,826 shares of its common stock in distributions to the Company’s stockholders. All of the cash distributions were paid from offering proceeds and constituted a return of capital. On March 22, 2018, the Company suspended payment of distributions.
The Company also raised approximately $2.5 million, net of offering costs, in funds from the private placements of Series A Convertible Redeemable Preferred Stock and approximately $36.0 million, net of offering costs, in funds from the private placements of Series 1 Convertible Redeemable Preferred Stock, a combined $9.1 million and $29.4 million for the years ended December 31, 2018 and 2017, respectively.
As of August 12, 2019, the Company had 6,933,254 shares of common stock issued and outstanding, 2,862 shares of preferred Series A stock outstanding and 39,811 shares of preferred Series 1 stock outstanding for total net proceeds of approximately $188.7 million, less offering costs.
As of June 30, 2019, the Company held 44 properties in various cities, all of which are parking facilities, with a combined total of 10,917 parking spaces.
On May 28, 2019, the Company established an estimated NAV equal to $25.10 per common share. Shares were originally priced at $25.00 each. On May 29, 2018, the REIT’s board of directors had approved an estimated net asset value per share of $24.61.
Sources: SEC, Blue Vault
