Pacific Oak Capital Advistors is taking over the management of three non-traded real estate investment trusts (REITs) established by KBS.
KBS said it is transferring the management of Strategic Opportunity REIT I, Strategic Opportunity REIT II and Keppel Pacific Oak US REIT so it can focus on core real estate.
The three REITs were established to take advantage of distress in the US real estate markets following the global financial crisis.
“When we launched the first opportunistic REIT in 2009, there was a clear and distinct opportunity to capitalise on the dislocation, lack of liquidity, and government intervention that existed in the commercial real estate markets at the time,” said KBS CEO Chuck J Schreiber Jr.”
Pacific Oak Capital Advisors, which was established last year by two KBS Capital Advisors co-founders Keith Hall and Peter McMillan III, will manage the REITs.
KBS said it would work closely with Pacific Oak Capital Advisors to “ensure a smooth transition”.
The asset management teams overseeing the 40 investments owned by the REITs will transfer from KBS to Pacific Oak Capital Advisors.
Schreiber said: “The Strategic Opportunity REIT continues to execute on its business plan focusing on opportunistic investments and adding value for its shareholders.”
KBS said it will continue to manage commercial real estate assets on behalf of large institutional investors, such as public and private pension plans, sovereign wealth funds and public non-traded investment trusts.
KBS also serves as the US asset manager for Singapore-based Prime US REIT.
“KBS’ strategy focuses on investments in urban markets that are attracting tech and creative users and have a wide range of amenities that help companies attract today’s top-tier talent,” said Schreiber.
“These include markets with good public transportation as well as entertainment, housing and dining amenities.”