Huntingdon unsolicited bid for KEYreit should maintain KEYreit’s REIT status

Huntingdon, a public real estate company which converted from an income fund on December 31, 2012, is making a cash bid for units of KEYreit, so as to increase its position from approximately 5% to approximately 50% (with the offer conditional on getting up to the 50% level).  In addition to making the bid less expensive, going for less than 100% of the units will let KEYreit continue to qualify as a mutual fund trust and a REIT.  Huntingdon is vague as to its specific plans for its proposed investment.

Neal Armstrong.  Summary of Huntingdon offer for KEYreit under REIT and Income Fund Acquistions – Acquisitions by Corporations.