Pacific Oak REIT Remains Neutral on Mini-Tender Offer

Company takes no position on West 4 Capital’s bid for common stock stake.

January 31, 2025

Pacific Oak's Stance on Mini-Tender Offer

Pacific Oak Strategic Opportunity REIT, Inc. has opted for a neutral position regarding a mini-tender offer initiated by West 4 Capital, LP. The investment firm has proposed to acquire up to 450,000 shares of the REIT’s common stock, representing roughly 0.4% of the total outstanding shares. In a recent filing, the company neither recommended acceptance nor rejection of the offer, leaving shareholders to determine their best course of action.

Understanding Mini-Tender Offers

Mini-tender offers are typically structured to purchase less than 5% of a company's outstanding shares, allowing bidders to bypass certain regulatory disclosures required for larger acquisitions. Investors often receive offers below prevailing market prices, and these transactions do not guarantee the same protections as standard tender offers. Pacific Oak’s decision to remain neutral indicates that it is not actively supporting the deal but is also not opposing it.

Implications for Shareholders

Stockholders of Pacific Oak must evaluate the offer based on their investment strategy and risk tolerance. While the REIT has chosen not to advise shareholders one way or another, investors should review the terms carefully, considering factors such as the bid price relative to net asset value and potential long-term returns on their holdings.

Looking Ahead

With Pacific Oak staying on the sidelines, shareholder response will dictate the outcome of West 4 Capital’s offer. The company’s official response, included as an exhibit in its latest SEC filing, provides additional details for investors weighing their options.