KBS Real Estate Investment Trust III Inc., a publicly registered non-traded real estate investment trust, has withdrawn its pre-effective registration statement for a $2 billion net asset value-based perpetual life offering, which was originally registered in January 2020.
KBS REIT III previously disclosed its evaluation of possible strategic alternatives to provide additional liquidity to stockholders, one being the potential conversion to an NAV REIT, where shares are valued as often as daily, but at least quarterly, on a net asset value basis. In addition to providing increased liquidity to stockholders, the company previously stated that a conversion could result in further growth of the company.
“Given changing market conditions, the company continues to evaluate various alternatives available to it, including whether or not to convert to a perpetual-life NAV REIT. In order to avoid additional legal, accounting and other offering costs while the company makes this determination, the company is submitting this request for the withdrawal of its registration statement,” the REIT stated in a filing with the Securities and Exchange Commission.
KBS REIT III’s initial offering commenced in October 2010 and closed in July 2015 after raising approximately $1.7 billion. As of May 2022, the REIT’s portfolio was comprised of 17 properties with an estimated value of $3 billion, based on September 2021 appraisals.