Another addition to an existing position came from the Fund committing to subscribe to the Trinity Place Holdings (Trinity Place) Rights Offering. Trinity Place (OTCPK:TPHS, Financial) was formerly the retail operations of Syms and Filene’s Basement that emerged from bankruptcy in 2013 as a company focused on realizing the value from the remaining assets, including: (i) well-located real estate properties, (ii) intellectual property primarily from Filene’s Basement, and (iii) substantial tax attributes. Since the Fund made its initial investment in 2013, the company has achieved a number of significant milestones under the leadership of its CEO, Matt Messinger, and is now primarily focused on the biggest opportunity within the company’s portfolio: a 240,000 square foot development project on the site of the former Syms store in lower Manhattan. To fund this project, the company will utilize existing resources, construction financing, and proceeds from the company’s $30 million Rights Offering, which is fully backstopped by existing shareholders, including the Fund’s commitment to take up at least its pro-rata share of the offering. The capital raise should enable the company to unlock substantial value in the company’s existing assets. Additionally, it creates the opportunity for Trinity Place to continue to evolve into a platform for additional value creating investments in real estate and real estate related opportunities over time.
From Third Avenue Management (Trades, Portfolio)'s fourth quarter 2015 Real Estate Value Fund commentary.
