October 7, 2022


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Pacific Oak Strategic Opportunity REIT and Pacific Oak Strategic Chance REIT II Finish Merger to Variety $2 Billion Organization(1) | News

LOS ANGELES, Oct. 5, 2020 /PRNewswire/ — Pacific Oak Strategic Prospect REIT, Inc. declared now the completion of its previously announced merger with Pacific Oak Strategic Possibility REIT II, Inc.  in a inventory-for-stock transaction, making a combined business with in excessive of $2 billion(1) in gross actual estate and true estate-connected assets. The combined business has retained the name “Pacific Oak Strategic Chance REIT, Inc.” and the merger is predicted to qualify as a tax-free reorganization.

“We value the have faith in and self-assurance of our stockholders and thank them for their help and votes in favor of the merger,” stated Keith D. Corridor, main govt officer and a director of Pacific Oak Strategic Option REIT. “We think the merger produces a more powerful and additional strong business, and offers substantial added benefits to stockholders, like improved access to money marketplaces and decreased working costs.”

Beneath the conditions of the merger, in trade for each share of popular stock owned, Pacific Oak Strategic Chance REIT II stockholders been given .9643 shares of the put together company’s prevalent stock. Pacific Oak Strategic Possibility REIT stockholders prior to the merger own approximately 69%, and previous Pacific Oak Strategic Opportunity REIT II stockholders have about 31%, of the blended business, on a thoroughly diluted foundation.

Administration thinks the merger delivers enhanced price to all stockholders and permits each individual firm’s stockholders to take part in a greater, more robust and far more diversified blended firm. Many stockholder benefits are expected, together with

  • the mixed firm’s portfolio is additional diversified with respect to tenants, asset sort and geographic spot than the personal portfolios on a stand-by yourself basis
  • the merged harmony sheet has increased fairness and liquidity as as opposed to the specific companies on a stand-alone basis
  • the merged organization positive aspects from the elimination of duplicative overhead costs and the creation of a additional streamlined and efficient business enterprise composition and
  • the increased size, scale and financials of the put together organization might enhance entry to cash marketplaces and reduce the price tag of money, which may be made use of to help strategic investments to generate development possibilities.

The merger settlement was negotiated on behalf of the stockholders by their respective specific committees, each of which was composed exclusively of independent directors from every single of the boards of directors.  Every distinctive committee was advised by different independent monetary and legal advisors. The board of directors of Pacific Oak Strategic Opportunity REIT and the board of administrators of Pacific Oak Strategic Option REIT II every single unanimously approved the merger.

Houlihan Lokey acted as money advisor to Pacific Oak Strategic Opportunity REIT’s distinctive committee of the board of directors and SunTrust Robinson Humphrey, Inc. acted as money advisor to Pacific Oak Strategic Chance REIT II’s particular committee of the board of administrators.  Morrison & Foerster LLP acted as legal counsel to Pacific Oak Strategic Prospect REIT’s specific committee of the board of directors, Rogers & Hardin LLP acted as authorized counsel to Pacific Oak Strategic Chance REIT II’s particular committee of the board of administrators and DLA Piper LLP (US) acted as lawful counsel to Pacific Oak Strategic Possibility REIT.

About Pacific Oak Strategic Opportunity REIT, Inc.
Pacific Oak Strategic Option REIT, Inc. is a public, non-traded company headquartered in Los Angeles, California, that has elected to be taxed and at present qualifies as true estate investment decision rely on and invests in opportunistic genuine estate and other real estate-similar investments. The corporation manages a portfolio valued in excessive of $2 billion,(1) comprised of 9 business office houses, a single business office portfolio consisting of four office buildings with somewhere around 3.8 million rentable square toes and 14 acres of undeveloped land, two hotel properties, two apartment houses, just one household house portfolio consisting of 1,760 solitary-spouse and children rental households, a few investments in undeveloped land with approximately 1,000 developable acres, an investment in an business office/retail assets redevelopment, six investments in unconsolidated entities and 3 investments in serious estate fairness securities as of October 5, 2020.

1 This is the estimated value reflected in the December 2019 estimated net asset benefit (“NAV”) and acquisition value for acquisitions subsequent to the December 2019 NAV valuation date for real estate and investments in unconsolidated joint ventures, moreover the value as of June 30, 2020 for equity securities, for investments in the portfolio as of June 30, 2020.  Price has been modified for the company’s share of consolidated and unconsolidated joint ventures.  For additional facts, see each firm’s respective Current Report on Variety 8-K submitted with the U.S. Securities and Trade Fee (the “SEC”) on December 19, 2019.

Forward-Wanting Statements
This interaction consists of statements that represent “ahead-hunting statements,” as this sort of term is outlined in Section 27A of the Securities Act and Section 21E of the Securities Exchange Act of 1934, as amended, and this kind of statements are meant to be included by the harmless harbor supplied by the identical. These statements are centered on management’s present-day anticipations and beliefs and are subject matter to a range of trends and uncertainties that could bring about actual benefits to vary materially from individuals explained in the forward-seeking statements Pacific Oak Strategic Opportunity REIT simply cannot give any assurance that its anticipations will be attained. Components that could lead to genuine final results to differ materially from Pacific Oak Strategic Opportunity REIT’s anticipations involve, but are not limited to, availability of suitable investment decision alternatives modifications in interest rates the availability and terms of financing normal financial circumstances current market circumstances legislative and regulatory alterations that could adversely have an effect on the organization of Pacific Oak Strategic Option REIT and other things, which include those set forth in the Threat Factors area of Pacific Oak Strategic Possibility REIT’s most recent Annual Report on Form 10-K filed with the SEC, and other reviews filed by Pacific Oak Strategic Chance REIT with the SEC, copies of which are obtainable on the SEC’s web site, www.sec.gov. Pacific Oak Strategic Prospect REIT undertakes no obligation to update these statements for revisions or changes after the day of this conversation, other than as essential by legislation.

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Damon Elder                                                                                    

Highlight Marketing Communications

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