Board of Pacific Oak Strategic Opportunity REIT Recommends Rejection of Tender Offer
January 31, 2020
Comrit Investments 1, LP, has made a third-party tender offer for shares of Pacific Oak Strategic Opportunity REIT, Inc., a nontraded REIT formerly known as KBS Strategic Opportunity REIT, Inc. The offer price is $7.44 per share. The Board of Directors of Pacific Oak Strategic Opportunity REIT recommended against selling shares. The board believes that the offer price is substantially below the value of the Company’s shares and recommends against shareholders tendering their shares at the offer.
On December 17, 2019, the REIT’s board of directors approved an estimated value per share (the “EVPS”) of the REIT’s common stock of $10.63 based on the estimated value of the REIT’s assets less the estimated value of the REIT’s liabilities, or net asset value, divided by the number of shares outstanding as of September 30, 2019, with the exception of the following adjustments: (i) the REIT’s real estate properties were valued as of October 31, 2019; (ii) an adjustment to reduce cash for the amount of capital expenditures incurred in October 2019; (iii) an adjustment for acquisition and disposition fees and expenses incurred in connection with the acquisition of Reven Housing REIT, Inc. and disposition of 125 John Carpenter; and (iv) a number of adjustments related to the participation fee potentiality liabilities to the former advisor, KBS Capital Advisors LLC, and the current advisor, Pacific Oak Capital Advisors, LLC, in connection with the termination of KBS Capital Advisors effective October 31, 2019 and the hiring of Pacific Oak Capital Advisors on November 1, 2019.
With respect to ordinary redemption requests received pursuant to the share redemption program (the “SRP”) for the first, second, third and fourth quarters of 2019, the REIT had unfulfilled requests to redeem 3,294,070, 3,782,675, 4,595,566 and 5,813,699 Shares, respectively, or 94.216%, 94.926%, 95.706% and 96.815%, respectively, of the Shares submitted for redemption, due to SRP funding limitations.
Source: SEC
