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Pacific Oak REIT Recommends Shareholders Reject Mini-Tender Offer

The board of Pacific Oak Strategic Opportunity REIT Inc., a publicly registered non-traded real estate investment trust formerly known as KBS Strategic Opportunity REIT Inc., sent a letter to its shareholders recommending that they reject an unsolicited mini-tender offer from West 4 Capital LP.

In the letter, Pacific Oak REIT says the board declared an estimated net asset value per share of $10.50 for its common stock as of Dec. 2, 2022. West 4 Capital LP’s offer price will be $5.51 per share.

“We believe the offer price is substantially below the value of the shares and recommend against selling your shares at that price,” the letter from Pacific Oak’s president Peter McMillan III stated. “We believe that the bidder’s offer is meant to take advantage of the illiquidity of our shares by buying your shares at a price significantly below their fair value in order to make a significant profit.”

As The DI Wire previously reported, Pacific Oak through a joint venture with Savanna, recently announced that it has executed a lease for 640,000 square feet of office space at 110 William Street in downtown Manhattan.

Pacific Oak Strategic Opportunity REIT invests in opportunistic real estate and other real estate-related investments and manages a portfolio valued in excess of $2 billion comprised primarily of office, land, apartment, single-family rental and hotel assets.

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