CSG - Chambers Street Properties

[wknecht]

For the folks that look at odd lot tenders, here’s an idea courtesy of Whopper Investments (http://www.whopperinvestments.com/chambers-street-csg-odd-lot-tender). The tender is for 5% of CSG's outstanding stock at a price between $10.10 - $10.60, at $0.10 increments. The offer expires June 19, 2013. Odd lots (less than 100 shares) are given priority if tendered lower than the Purchase Price (determined by Dutch auction in this case).

 

With the stock trading around $9.30 +/-, the returns look like this before commissions and taxes:

 

Purchase Price Return Annualized

$10.60 13.98% 380.7%

$10.50 12.90% 329.0%

$10.40 11.83% 282.5%

$10.30 10.75% 240.6%

$10.20 9.68% 203.0%

$10.10 8.60% 169.2%

 

Seems a decent way to put a small amount of money to work if one can spread around multiple accounts. I guess the strategy would be to tender at $10.10 to guarantee the shares get tendered. Now if only I could participate in 850 or so of these a year.

 

Here's the Offer to Purchase: http://www.sec.gov/Archives/edgar/data/1297587/000119312513228677/d539745dex99a1a.htm.

[beerbaron]

Here is one the the main condition:

 

no decrease or increase of more than 10% in the market price for the Common Shares or in the Dow Jones Industrial Average, New York Stock Exchange Index, NASDAQ Composite Index or the Standard and Poor’s 500 Composite Index measured from the close of trading on May 21, 2013, shall have occurred;

 

I would be inclined to do buy puts on a REIT index in case it drops below 9.00$. Anybody can recommend a liquid option index I could buy puts?

 

BeerBaron

 

[stahleyp]

Beer, VNQ is pretty liquid if you're looking for an ETF. I believe it has an average trading volume of about 2.5 million shares a day.

 

By the way, this just started trading within the last week or so. Why would they be trying to by back shares already?