Pacific Oak Strategic Opportunity REIT, Inc. Acquires Reven Housing REIT, Inc.
November 5, 2019
• Business relaunched as Pacific Oak Residential Trust, Inc.
• Closes Series A Preferred Stock Offering
Pacific Oak Strategic Opportunity REIT, Inc. (formerly known as KBS Strategic Opportunity REIT, Inc.), a Maryland corporation (“SOR”), announced today the closing of the previously announced merger of Reven Housing REIT, Inc., a Maryland corporation (the “Company” or “Reven”), with SOR PORT, LLC, a Maryland limited liability company and an indirect, wholly-owned subsidiary of SOR, for approximately $56.6 million in cash, or $5.13 per share of Reven common stock. At the closing of the merger, Reven became an indirect, wholly-owned subsidiary of SOR and changed its name to “Pacific Oak Residential Trust, Inc.” (“PORT”).
Additionally, on November 5, 2019, following the closing of the merger, PORT closed the previously announced offering pursuant to Rule 506(c) of Regulation D under the Securities Act of 1933, as amended (the “Securities Act”), of newly-created 6.0% Series A Cumulative Convertible Redeemable Preferred Stock, par value $0.001 per share (the “Series A Preferred Stock”), to its former stockholders of record who are “accredited investors” (as defined in Rule 501(a) of Regulation D under the Securities Act). The offering of the Series A Preferred Stock expired at 5:00 p.m., Eastern Time, on October 31, 2019. At the closing of the offering, PORT issued and sold 15,000 shares of Series A Preferred Stock, at a price of $1,000 per share of Series A Preferred Stock, for total gross proceeds of $15 million.
“Today marks a significant step forward in the development of Pacific Oak’s residential investment business, which we will consolidate within PORT,” said Keith Hall, Chief Executive Officer of SOR. “The Reven transaction follows on SOR’s prior single-family residential investments, including our March investment into Battery Point Trust, Inc. Collectively, these represent the first steps in maximizing the value of our residential investments for our shareholders.”
“We are particularly pleased with the preferred stock transaction,” added Peter McMillan, SOR’s Chairman of the Board. “This transaction represents a strategic investment from a new group of Chinese investors, complementing SOR’s successful prior capital raise in Israel, as well as our successful capital raises in Singapore through Keppel Pacific Oak US REIT.”
Chad Carpenter, Reven’s Chairman of the Board and Chief Executive Officer, stated, “I would like to personally thank our investors, business partners and the Reven management team for their support as we grew Reven from the ground up to a successful public company. We are delighted to have completed the merger with SOR, which has delivered immediate and substantial cash value to all Reven stockholders.”
About Pacific Oak Strategic Opportunity REIT, Inc.
Pacific Oak Strategic Opportunity REIT, Inc. is a non-traded Real Estate Investment Trust (REIT) designed to provide stockholders attractive total returns through the purchase of commercial real estate and related investments offering attractive risk-adjusted returns. SOR invests across all real asset classes, including debt, equity, and corporate investments, targeting both developed and less liquid markets.
Source: Pacific Oak Press Release
