NEWPORT BEACH, CA—KBS Real Estate Investment Trust Inc., a non-traded REIT, has announced its intent to market the company's assets for sale. A special committee composed of all of the company's independent directors was formed in January by the firm's board of directors to continues to explore strategic alternatives, but the board may conclude that it would be best for the company and its stockholders to sell one or more of the company's assets and possibly adopt a liquidation plan for the rest of its assets.
As part of the process of exploring strategic alternatives, on February 23 the special committee engaged Evercore Group LLC to act as financial advisor to the company to assist it and the special committee with the process of exploring strategic alternatives. While the special committee continues to explore strategic alternatives, it has determined that it would be in the best interests of the company and its stockholders to market for sale its assets. Based on the results of this sales effort, the board of directors may conclude that it would be in the best interests of the company and its stockholders to sell one or more of the company's assets, and depending on the scope of the proposed asset sales, thereafter to adopt a plan of liquidation that would involve the sale of the company's remaining assets. In the event of such a determination, the proposed plan of liquidation would be presented to the company's stockholders for approval.
Alternatively, based on the results of the initial sales effort, the board may conclude that it would be in the best interests of the company and its stockholders for the company to engage in a limited number of asset sales and continue to operate as a going concern, but with a portfolio that is smaller than the present portfolio.
GlobeSt.com was unable to reach KBS for comment on what this means for the company going forward. In 2015, KBS made several acquisitions to its REITs, including, to KBS REIT III, Village Center Station, a 10-story class A office development located in greater Denver's southeast region, and 100% of the outstanding shares of common stock of the fee owners of two multi-tenant office buildings known as Promenade I & II at Éilan in San Antonio; and, to the firm's brand-new REIT, KBS Growth & Income REIT, Von Karman Tech Center in Irvine. It is to be noted that these REITs are separate from KBS REIT I; neither KBS REIT III nor KBS Growth & Income REIT is being considered for liquidation at this time.
NEWPORT BEACH, CA—KBS Real Estate Investment Trust Inc., a non-traded REIT, has announced its intent to market the company's assets for sale. A special committee composed of all of the company's independent directors was formed in January by the firm's board of directors to continues to explore strategic alternatives, but the board may conclude that it would be best for the company and its stockholders to sell one or more of the company's assets and possibly adopt a liquidation plan for the rest of its assets.
As part of the process of exploring strategic alternatives, on February 23 the special committee engaged Evercore Group LLC to act as financial advisor to the company to assist it and the special committee with the process of exploring strategic alternatives. While the special committee continues to explore strategic alternatives, it has determined that it would be in the best interests of the company and its stockholders to market for sale its assets. Based on the results of this sales effort, the board of directors may conclude that it would be in the best interests of the company and its stockholders to sell one or more of the company's assets, and depending on the scope of the proposed asset sales, thereafter to adopt a plan of liquidation that would involve the sale of the company's remaining assets. In the event of such a determination, the proposed plan of liquidation would be presented to the company's stockholders for approval.
Alternatively, based on the results of the initial sales effort, the board may conclude that it would be in the best interests of the company and its stockholders for the company to engage in a limited number of asset sales and continue to operate as a going concern, but with a portfolio that is smaller than the present portfolio.
GlobeSt.com was unable to reach KBS for comment on what this means for the company going forward. In 2015, KBS made several acquisitions to its REITs, including, to KBS REIT III, Village Center Station, a 10-story class A office development located in greater Denver's southeast region, and 100% of the outstanding shares of common stock of the fee owners of two multi-tenant office buildings known as Promenade I & II at Éilan in San Antonio; and, to the firm's brand-new REIT, KBS Growth & Income REIT, Von Karman Tech Center in Irvine. It is to be noted that these REITs are separate from KBS REIT I; neither KBS REIT III nor KBS Growth & Income REIT is being considered for liquidation at this time.
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