Pacific Oak Capital Advisors Selected as Replacement Sponsor and Advisor for KBS Strategic Opportunity REIT, KBS Strategic Opportunity REIT II and Keppel Pacific Oak US REIT

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Oct 14, 2019, 11:00 ET

LOS ANGELES, Oct. 14, 2019 /PRNewswire/ -- Pacific Oak Capital Advisors LLC, a sponsor of commercial real estate-focused alternative investments programs, announced today that the independent members of the boards of directors of KBS Strategic Opportunity REIT, Inc. and KBS Strategic Opportunity REIT II, Inc. have elected to move their existing advisory arrangements from KBS Capital Advisors, LLC and its affiliates to Pacific Oak Capital Advisors, effective November 1, 2019. The board of directors of Keppel Pacific Oak US REIT, which trades on the Singapore Exchange Securities Trading Limited as "KepPacOakREITUSD," has also elected to move its external management agreement from affiliates of KBS to Pacific Oak.

In total, the three real estate investment trusts own approximately $3.1 billion worth of commercial real estate assets on behalf of thousands of investors. Pacific Oak and KBS are working to complete the transition of all advisory services by Oct. 31, 2019.

Pacific Oak and its affiliates facilitate the acquisition, disposition and management of commercial real estate and commercial real estate-related investment products, as well as the distribution of financial products designed to provide individual and institutional investors with the benefits that can accrue from the ownership of commercial real estate. Investment offerings include tax-advantaged Delaware statutory trusts (DSTs) and qualified opportunity zone funds (QOZFs), real estate investment trusts (REITs), as well as other value-add alternative investment products.

"We are pleased that the independent boards of directors have chosen Pacific Oak to manage the REITs. This is the culmination of a long and thoughtful process by Pacific Oak and KBS which allows each company to focus on its core strengths," said Strategic Opportunity REIT Chairman Peter McMillan. "This transition will allow Strategic Opportunity REIT to pursue its strategic growth plan in unison with its long-standing partners in the wealth advisory community."

As previously disclosed to shareholders of Strategic Opportunity REIT by its board of directors, the company plans to pursue a conversion to a net asset value (NAV) REIT.

"When we launched the Strategic Opportunity REITs, there was and continues to be a clear and distinct opportunity to capitalize on upward changing markets, mismanagement and robust demand in the commercial and residential real estate markets nationwide," explained Keith Hall, chief executive officer of Strategic Opportunity REIT. "The Strategic Opportunity REITs continue to execute on their respective business plans by focusing on opportunistic investments and adding value for shareholders."

The KBS asset management team that manages the opportunistic portfolios will move to Pacific Oak Capital Advisors and will continue to manage the same assets. The REITs will also change their names to Pacific Oak Strategic Opportunity REIT and Pacific Oak Strategic Opportunity REIT II upon the conclusion of the transition.

As of Nov. 1, 2019, interested parties should direct all inquiries regarding the REITs to Pacific Oak Capital Markets Group at 1-866-722-6257 (1-866-PAC-OAK7) or visit www.PacificOakCapital.com for more information.

About Pacific Oak
As a private equity real estate company and an SEC-registered investment adviser, Pacific Oak and its founders' affiliated companies have completed transactional activity of approximately $20 billion on behalf of seven public non-traded real estate investment trusts (REITs), and serves as the asset manager for one REIT listed in Singapore. Pacific Oak was founded in 2018 by Keith Hall and Peter McMillan. The firm is committed in its business ethics, its business relationships and its constant focus on exceeding the expectations of our investors and partners. For more information regarding Pacific Oak, please visit www.PacificOakCapital.com.

Registration as an investment adviser does not imply a certain level of skill or training.

Cautionary Note Regarding Forward-Looking Statements: The foregoing includes forward-looking statements within the meaning of the Federal Private Securities Litigation Reform Act of 1995. Pacific Oak intends that such forward-looking statements be subject to the safe harbors created by Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These statements include statements regarding the intent, belief or current expectations of Pacific Oak and members of its management team, as well as the assumptions on which such statements are based, and generally are identified by the use of words such as "may," "will," "seeks," "anticipates," "believes," "estimates," "expects," "plans," "intends," "should" or similar expressions. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date they are made. Pacific Oak undertakes no obligation to update or revise forward-looking statements to reflect changed assumptions, the occurrence of unanticipated events or changes to future operating results over time, unless required by law. Such statements are subject to known and unknown risks and uncertainties which could cause actual results to differ materially from those contemplated by such forward-looking statements. Pacific Oak makes no representation or warranty (express or implied) about the accuracy of any such forward-looking statements. These statements are based on a number of assumptions involving the judgment of management.