VANCOUVER, July 15, 2016 /PRNewswire/ -- City Office REIT, Inc. (NYSE: CIO) ("City Office" or the "Company") announced today that the Company, upon receiving a redemption request from certain limited partners of the Company's operating partnership (the "Operating Partnership"), has issued a total of 3,126,084 shares of its common stock, par value $0.01 per share ("Common Stock"). The shares of Common Stock were issued in connection with such limited partners' redemption of a total of 3,126,084 units of limited partnership interest ("OP Units") in the Operating Partnership (the "Redemption"). The OP Units tendered by the limited partners were originally issued by the Operating Partnership as part of the Company's IPO formation transactions to certain affiliates of Second City Capital Partners II, Limited Partnership, a real estate focused private equity fund (together with its affiliates "Second City"). After giving effect to the issuance of the 3,126,084 shares of Common Stock issued in the Redemption, the Company has 24,681,602 fully diluted shares outstanding.
In addition, the Company announced that it has appointed Jeffrey D. Kohn to the Company's Board of Directors effective immediately. Mr. Kohn is the principal partner and president of MDC Property Services Ltd. ("MDC") and has over 25 years of experience in the real estate industry. MDC and its affiliates manage over $3.0 billion of commercial real estate across North America. Also, Second City has advised the Company that in two separate transactions, Mr. Kohn along with James ("Jim") Balsillie and entities affiliated with him, have purchased an aggregate of 2.5 million shares of Common Stock at $13.00 per share from Second City.
James Farrar, the Company's Chief Executive Officer, said, "We welcome Jeff as a new director. He has tremendous real estate expertise in many of our target markets and we expect him to make valuable contributions to our Board."
Furthermore, Second City has advised the Company that Second City distributed its 2,137,430 shares of Common Stock, including the shares received in the Redemption, to Second City fund investors.
Mr. Farrar continued, "While Second City was critical to the formation and early growth stage of the Company, the Company believes that this Redemption and distribution is an important step in our future as a public company. We believe that the Redemption and distribution benefits our shareholders by diversifying our shareholder base, and potentially increases shareholder liquidity going forward. We thank Second City and its investors, which include institutions and a number of prominent business people, for supporting the Company in its IPO and formative years, and we welcome these investors as our newest shareholders."
About City Office REIT, Inc.
City Office REIT is an internally-managed real estate company focused on acquiring, owning and operating high-quality office properties located in leading markets in the Southern and Western United States. City Office currently owns or has an interest in 3.5 million square feet of office properties. Additional information about City Office is available on the Company's website at www.cityofficereit.com. The Company has elected to be taxed as a real estate investment trust for U.S. federal income tax purposes.
Forward Looking Statements
This press release contains "forward looking statements" within the meaning of the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995 and other federal securities laws. All statements that are not statements of historical facts are, or may be deemed to be, forward looking statements. These forward looking statements include, but are not limited to, the Company's ability to source, acquire and close on properties on attractive terms, or at all; the Company's expectations and forecasts of future leasing activity at its current and future properties, and the Company's ability to accurately model the income yield, capitalization rate, and other financial metrics used to evaluate its properties. These and other material risks are described in the Company's Annual Report on Form 10-K for the year ended December 31, 2015 and any other documents filed by the Company from time to time, which are available from the Company and from the SEC, and you should read and understand these risks when evaluating any forward-looking statement. The Company does not have any obligation to publicly update any forward looking statements to reflect subsequent events or circumstances.
City Office REIT, Inc.
Anthony Maretic, CFO
SOURCE City Office REIT, Inc.