VANCOUVER, July 15, 2016 /PRNewswire/ -- City Office
REIT, Inc. (NYSE: CIO) ("City Office" or the "Company") announced
today that the Company, upon receiving a redemption request from
certain limited partners of the Company's operating partnership
(the "Operating Partnership"), has issued a total of 3,126,084
shares of its common stock, par value $0.01 per share ("Common Stock"). The
shares of Common Stock were issued in connection with such limited
partners' redemption of a total of 3,126,084 units of limited
partnership interest ("OP Units") in the Operating Partnership (the
"Redemption"). The OP Units tendered by the limited partners
were originally issued by the Operating Partnership as part of the
Company's IPO formation transactions to certain affiliates of
Second City Capital Partners II, Limited Partnership, a real estate
focused private equity fund (together with its affiliates "Second
City"). After giving effect to the issuance of the 3,126,084 shares
of Common Stock issued in the Redemption, the Company has
24,681,602 fully diluted shares outstanding.
In addition, the Company announced that it has appointed
Jeffrey D. Kohn to the Company's
Board of Directors effective immediately. Mr. Kohn is the
principal partner and president of MDC Property Services Ltd.
("MDC") and has over 25 years of experience in the real estate
industry. MDC and its affiliates manage over $3.0 billion of commercial real estate across
North America. Also, Second City has advised the Company that
in two separate transactions, Mr. Kohn along with James ("Jim")
Balsillie and entities affiliated with him, have purchased an
aggregate of 2.5 million shares of Common Stock at $13.00 per share from Second City.
James Farrar, the Company's Chief
Executive Officer, said, "We welcome Jeff as a new director.
He has tremendous real estate expertise in many of our target
markets and we expect him to make valuable contributions to our
Board."
Furthermore, Second City has advised the Company that Second
City distributed its 2,137,430 shares of Common Stock, including
the shares received in the Redemption, to Second City fund
investors.
Mr. Farrar continued, "While Second City was critical to the
formation and early growth stage of the Company, the Company
believes that this Redemption and distribution is an important step
in our future as a public company. We believe that the
Redemption and distribution benefits our shareholders by
diversifying our shareholder base, and potentially increases
shareholder liquidity going forward. We thank Second City and
its investors, which include institutions and a number of prominent
business people, for supporting the Company in its IPO and
formative years, and we welcome these investors as our newest
shareholders."
About City Office REIT, Inc.
City Office REIT is an internally-managed real estate company
focused on acquiring, owning and operating high-quality office
properties located in leading markets in the Southern and Western
United States. City Office currently owns or has an interest
in 3.5 million square feet of office properties. Additional
information about City Office is available on the Company's website
at www.cityofficereit.com. The Company has elected to be
taxed as a real estate investment trust for U.S. federal income tax
purposes.
Forward Looking Statements
This press release contains "forward looking statements" within
the meaning of the "safe harbor" provisions of the Private
Securities Litigation Reform Act of 1995 and other federal
securities laws. All statements that are not statements of
historical facts are, or may be deemed to be, forward looking
statements. These forward looking statements include, but are
not limited to, the Company's ability to source, acquire and close
on properties on attractive terms, or at all; the Company's
expectations and forecasts of future leasing activity at its
current and future properties, and the Company's ability to
accurately model the income yield, capitalization rate, and other
financial metrics used to evaluate its properties. These and other
material risks are described in the Company's Annual Report on Form
10-K for the year ended December 31,
2015 and any other documents filed by the Company from time
to time, which are available from the Company and from the SEC, and
you should read and understand these risks when evaluating any
forward-looking statement. The Company does not have any obligation
to publicly update any forward looking statements to reflect
subsequent events or circumstances.
Contact
City Office REIT, Inc.
Anthony Maretic, CFO
+1-604-806-3366
investorrelations@cityofficereit.com
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SOURCE City Office REIT, Inc.