KBS Strategic Opportunity REIT to Launch Self-Tender Offer
KBS Strategic Opportunity REIT Inc., a publicly registered non-traded real estate investment trust, is planning a self-tender offer on September 14, 2017 to purchase up to approximately 3.6 million shares of common stock for $14.07 per share. The offering price is 95 percent of the most recent estimated value per share of $14.81.
The value of the offer is expected to be approximately $50 million, which will be funded with available cash on hand. The company expects to allow stockholders to tender all or a portion of their shares, however, if the tender offer is oversubscribed, shares will be accepted on a prorated basis.
If the company commences the tender offer, the share redemption program will be suspended from September 29, 2017 through October 31, 2017, meaning no redemptions will be made in September or October.
The offer is expected to expire on October 12, 2017, and payments will be made “promptly” after that date.
KBS Strategic Opportunity REIT went effective in November 2009 and closed its primary offering three years later after raising $574 million in investor equity. As of the second quarter 2017, the company owned 20 properties with an investment cost of $1.2 billion, according to Summit Investment Research.