Asset management firm Melody Investment Advisors LP is trying to buy the assets of Landmark Infrastructure Partners LP (LIP).
Melody has submitted a proposal to purchase 100 percent of the assets currently owned by LIP through one or a series of transactions, offering $16.25 per Landmark common unit in cash.
According to the Nasdaq, LIP has a market cap of $369.5 million and a total of 25 million shares, meaning the offer would total around $406 million.
Melody said its offer was higher than those offered by Digital Colony – now DigitalBridge – and Verde Investments, Inc., which reportedly offered $13 and $13.50 per share respectively.
“Melody's proposal both is financially superior and provides equal or greater transaction certainty than the Colony and Verde proposals given Melody's ample committed and available capital and ability to quickly close the transaction,” the company said.
“We are confident that the vast majority of Landmark unitholders who are unaffiliated with Colony would find our proposal compelling. If, in fact, the Committee is seeking to run a fair and open sales process and maximize value for Landmark's unitholders, as we expect is the Committee's intention, we request that representatives of the Committee promptly enter into discussions with us concerning our proposal,” added Omar Jaffrey, Managing Partner at Melody Investment Partners.
The company said its experience would allow it maximize the value of these assets, and would be well-positioned to execute an efficient and straightforward transaction. Melody also added that it may be able to up its offer if the result of the due diligence process is favorable.
Landmark Infrastructure Partners is a real estate and infrastructure company formed Landmark Dividend. Where Landmark Dividend owns a large number of data centers across the US, LIP is focused on wireless communication, outdoor advertising and renewable power generation industries and its assets include cellular towers, rooftop wireless sites, billboards and wind turbines.
Landmark Dividend was acquired by Digital Colony – now known as DigitalBridge – in May. At the time, Digital Colony said it also planned to submit a proposal to buy Landmark Infrastructure Partners LP.
In its Q2 2021 results this month, LIP announced rental revenue of $17.6 million, a 27 percent increase year-over-year. So far this year the company has acquired a total of four assets for total consideration of approximately $1.6 million.
“The Partnership delivered another solid quarter of operating and financial results,” said Tim Brazy, Chief Executive Officer of the Partnership’s general partner. “The opportunistic acquisitions completed during 2020, along with growing cash flows from our portfolio, contributed to strong year-over-year growth in AFFO [Adjusted Funds From Operations].”
Landmark Dividend’s most recently announced data center deal saw it acquire a third data center from Chirisa Investments in March, though it has since added a facility in Baltimore to its list of acquisitions, which seems to be 7939 Honeygo Blvd; a multi-tenant office site.