Pacific Oak Renews Advisory Agreement with Pacific Oak Capital Advisors

The renewal aligns with bondholder standstill terms and includes flexible monthly termination provisions.

November 06, 2025

Short-Term Structure Gives Pacific Oak Flexibility

Pacific Oak Strategic Opportunity REIT has renewed its advisory agreement with Pacific Oak Capital Advisors, keeping the relationship in place through a flexible, short-term structure. The agreement, effective November 1, 2025, reflects terms tied to a standstill agreement signed in August with bondholders of its subsidiary, Pacific Oak SOR (BVI) Holdings.

Here’s what changed: the agreement now runs on rolling one-month terms. It starts with a one-month period and continues renewing automatically each month through November 1, 2026—unless either side decides to step away. Termination can happen at the end of any monthly term with notice from either the advisor or Pacific Oak’s conflicts committee. There’s no penalty and no need to cite a reason.

The agreement is also designed to end earlier if the standstill agreement expires before the final renewal date. That structure ensures alignment with the financial restrictions in place between Pacific Oak and its bondholders, specifically those tied to payment terms laid out in the annex to the standstill.

Consistency with Built-in Flexibility

Functionally, the arrangement keeps the advisor relationship consistent while adding more optionality around how long it lasts. The company has room to adjust based on how its situation evolves, while the advisor agreement remains in sync with broader financial obligations.

Other terms of the advisory relationship haven’t changed. The renewal keeps existing fee structures and responsibilities intact. What’s different is how the company can now respond to changes in its financial framework—month by month, as needed.

For Pacific Oak, the renewal locks in advisory continuity while leaving room to adapt. With a path forward that reflects current constraints but allows for future flexibility, the company stays positioned to navigate both operational needs and financial oversight efficiently.