KBS Strategic Opportunity REIT Inc. urged its shareholders to reject a mini-tender offer by MacKenzie Capital Management LP affiliates for up to 1 million shares of the company's common stock, representing about 1.9% of its outstanding shares.
The real estate investment trust said in a release that the $11.01-per-share price offered by the bidder is "substantially" below the value of its shares.
KBS said the recent $804 million sale of 11 of its properties to subsidiaries of Singapore-based Keppel-KBS US REIT had generated additional capital, which may be directed toward its share redemption program and/or tender offers.
The company is also thinking about converting to a net asset value REIT, which would enhance its capacity to repurchase shares.
