KBS Strategic Opportunity REIT Inc., a publicly registered non-traded real estate investment trust, plans to sell 11 of its properties to subsidiaries of a newly formed Singapore real estate investment trust that is expected to be listed on the Singapore Stock Exchange, according to a filing with the Securities and Exchange Commission. The purchase price was not disclosed in the filing.
The REIT will be sponsored by KBS Pacific Advisors Pte. Ltd. and Keppel Capital Holdings Pte. Ltd., an affiliate of Singapore-based conglomerate, Keppel Corp.
The Singapore REIT will be externally managed by joint venture between Keppel Capital Holdings and an entity indirectly owned by KBS Strategic Opportunity REIT CEO and director Keith Hall and president and chairman Peter McMillan III.
The transaction is subject to a number of conditions, including the Singapore REIT securing the capital necessary to purchase 11 properties, which may not be raised from U.S investors.
KBS Strategic Opportunity REIT expects to hold a 9.5 percent ownership interest in the Singapore REIT when listed.
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.