Shareholders of KBS Real Estate Investment Trust II, a publicly registered non-traded REIT, approved the company’s liquidation and dissolution plan at its annual meeting on March 5, 2020.
The purpose of the plan is to provide liquidity to stockholders by selling the company’s assets, paying its debts and distributing the net proceeds. At the meeting, approximately 116.1 million shares voted in favor, 3.8 million voted against, 5.3 million abstained, and there were 20.9 million broker non-votes.
The REIT expects the net proceeds of the liquidation plan to range between approximately $3.40 and $3.83 per share.
In addition, the board authorized an initial liquidating distribution of $0.75 per share of common stock to stockholders of record as of the close of business on March 5, 2020. The distribution will be paid around March 10, 2020.
In connection with the distribution, the board also approved an updated estimated value per share of the company’s common stock of $2.87 to reflect the impact of the payment.
The valuation is equal to the midpoint of the estimated range of liquidating distributions of $3.40 and $3.83 per share of approximately $3.62, reduced by the initial liquidating distribution of $0.75 per share of common stock.
The REIT previously paid a $4.50 per share special distribution in September 2014 and a $0.45 per share special distribution in June 2019. Shares originally sold for $10.00 each.
KBS REIT II closed its primary offering in December 2010 after raising approximately $1.8 billion in investor equity.