On April 6, 2021, Starwood Capital Group announced a Tender Offer to acquire all Units of Invesco Office J-REIT, Inc. listed on the J-REIT market of the Tokyo Stock Exchange and take Invesco Office J-REIT private.
An attractive premium for existing unitholders
Based on a detailed review of Invesco Office J-REIT, Inc. and the underlying conditions of the capital and real estate office markets in Japan, we believe we can provide unitholders with immediate attractive value for their holdings above the current net asset value, and also create significant value by privatizing the portfolio.
The value proposition for this offer is underpinned by our ability to implement certain long-term improvements to the properties which can only realistically be achieved within a private ownership structure.
A privately held structure provides enhanced operational flexibility
Because of the structural disruptions to office sector demand patterns caused by COVID-19 and the volatility that the global market may face, we believe the current legal and commercial constraints of a listed J-REIT vehicle do not allow the current management team sufficient flexibility to aggressively tackle lease roll-overs, optimize the capital structure, and commence capital intensive asset management initiatives. These kinds of value-adding initiatives are all better accomplished in a private vehicle and with a well-capitalized institutional shareholder like SCG.
April 19, 2021: First Amendment to Tender Offer Document
May 10, 2021: Second Amendment to Tender Offer Document