Company: NXDT
Filing Date: 2025-01-21
Form Type: 424B3
Source: 0001437749-25-001494
Chunk: 42

Company: NEXPOINT DIVERSIFIED REAL ESTATE TRUST
Filing Date: 2025-01-21
Form: 424B3
Chunk 42
---
 Material Facts |

Except as described or referred to in this Information Circular, NHT is not aware of any material fact concerning the securities or any other matter not previously generally disclosed and known to NHT which would reasonably be expected to affect the decision of Unitholders to accept or reject the Amended COVID Loans Resolution. Except as described or referred to in this Information Circular or as otherwise publicly disclosed, NHT has no current plans or proposals to make any material change in its business, corporate structure, management or personnel.

<div align='center'>-28-</div>

| (iv) | Previous Purchases and Sales of Securities |

No securities of the REIT were purchased or sold by the REIT during the twelve months preceding the date of the Amendments.

| 5. | Approval of Amendments to CDOR Loans |

On July 22, 2019, the REIT announced that NHT OP and certain affiliates of the REIT had entered into a definitive agreement and plan of merger to acquire all of the outstanding equity interests of Condor Hospitality Trust, Inc. (“Condor”) and Condor’s operating partnership, Condor Hospitality Limited Partnership (“Condor OP”) (such transaction, the “Condor Transaction”). Pursuant to the Condor Transaction, the REIT agreed to indirectly acquire 15 select-service and extended stay hospitality properties, comprising 1,908 guestrooms across eight U.S. states for a purchase price of approximately $318 million. The Condor Transaction was originally scheduled to close on or before December 31, 2019, however, due to various delays, including the onset of the COVID-19 pandemic, Condor delivered a notice of termination (the “Termination Notice”) of the Condor Transaction on September 18, 2020, and claimed that it was entitled to receive a termination fee of approximately $12 million.

Pursuant to a Settlement and Release Agreement (the “Settlement Agreement”) entered into on October 14, 2020 by and among, inter alia, Condor, Condor OP, the REIT, NHT OP and CDOR Option Sub LLC, NHT REIT Merger Sub, LLC, NHT Operating Partnership II, LLC, CDOR Option Sub, LLC and NexPoint Advisors L.P. (together with the REIT, NHT OP, NHT REIT Merger Sub, LLC, NHT Operating Partnership II, LLC and CDOR Option Sub LLC, the “NHT Parties”) a settlement amount of $7 million was paid