Pacific Oak Strategic Opportunity REIT Inc. (SOR), a publicly registered non-traded real estate investment trust formerly known as KBS Strategic Opportunity REIT Inc., has completed the previously announced merger with Reven Housing REIT Inc. (NASDAQ: RVEN), a publicly traded REIT, 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 Pacific Oak Strategic Opportunity REIT and changed its name to Pacific Oak Residential Trust Inc.
Additionally, following the closing of the merger, Pacific Oak Residential Trust closed a private offering of newly created 6.0 Percent Series A Cumulative Convertible Redeemable Preferred Stock. Pacific Oak Residential Trust issued and sold 15,000 shares of Series A Preferred Stock to a group of Chinese investors for $1,000 per share for total 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 Pacific Oak Residential Trust,” said Keith Hall, chief executive officer of Pacific Oak Strategic Opportunity REIT. “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.”
Pacific Oak Strategic Opportunity REIT launched its initial public offering in November 2009 and has raised approximately $637 million in investor equity from the offering and distribution reimbursement plan, as of the second quarter 2019. The company owns seven office properties and one office portfolio consisting of four office buildings and 14 acres of undeveloped land valued at $731.9 million.