KBS Strategic Opportunity REIT Sells Portfolio of 11 Properties for $804 Million
November 28, 2017 | KBS Capital Markets Group
Distinctive Office REIT with Investment Properties in Key US Growth Markets to be Offered
through Newly Formed Singapore Real Estate Investment Trust
NEWPORT BEACH, CA. (Nov. 28, 2017) – KBS Strategic Opportunity REIT, Inc., a non-traded real estate investment trust based in Newport Beach, California sold 11 of its properties to various subsidiaries of Keppel-KBS US REIT, a newly formed Singapore real estate investment trust (the “SREIT”) that recently listed on the Singapore Stock Exchange, for $804 million.
The Portfolio consisted of assets strategically located in key US growth markets including Seattle, Sacramento, Denver, Austin, Houston, Atlanta and Orlando. The Portfolio consists of the following properties: 1800 West Loop, Westech 360, Great Hills Plaza, Westmoor Center, Iron Point Business Park, the Plaza Buildings, Bellevue Technology Center, Northridge Center I and II, West Loop I and II, Powers Ferry Landing East, and Maitland Promenade II.
The SREIT and its underlying properties will be externally managed by a joint venture between (i) an entity in which Keith D. Hall and Peter McMillan III have an indirect ownership interest in and (ii) Keppel Capital Holding Pte. Ltd. Keith D. Hall and Peter McMillan III are Co-Founders of KBS Capital Advisors. The Offering consists of an international placement of 228,681,800 Units to investors, outside of the US and an offering of 34,090,600 Units to the public in Singapore.
“We believe that the Singapore Transaction was an excellent opportunity to monetize these assets at attractive pricing and to utilize a substantial portion of the net proceeds to invest in new opportunistic investments, as well as current capital projects,” said Keith Hall, Chief Executive Officer and Director of KBS Strategic Opportunity REIT. “We are pleased with the completion of the transaction.”
KBS Capital Advisors is the external advisor to KBS Real Estate Investment Trusts (REITs), and is an affiliate of KBS Realty Advisors, a private equity real estate company and SEC-registered investment adviser founded in 1992. Since its inception, KBS-affiliated companies have completed transactional activity in excess of $35 billion via 15 separate accounts, six commingled funds, five sovereign wealth funds and seven non-traded REITs. For information, visit www.kbs.com.
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