VANCOUVER, Aug. 20, 2021 /PRNewswire/ -- City Office
REIT, Inc. (NYSE: CIO) ("City Office" or the "Company") announced
today that it has entered into definitive agreements to sell all of
its holdings in the Sorrento Mesa submarket of San Diego for $576
million. The transactions are expected to generate net
proceeds, after estimated closing and transaction costs, of
approximately $546 million, which
equates to $12.38 per common
share. The properties to be sold are unencumbered by
The sales will be completed pursuant to two separate
agreements. The northern portion of the portfolio is
scheduled to close in December 2021
for $395 million. The southern
portion of the portfolio is scheduled to close in February 2023 for $181
million. City Office has the ability to accelerate
either closing date to align with redeployment opportunities.
Both sales are subject to customary closing conditions.
"We are pleased to announce the agreements to sell our Sorrento
Mesa life science portfolio," commented James Farrar, the Company's Chief Executive
Officer. "Since our initial acquisition of properties in
Sorrento Mesa in 2017, we have re-positioned, re-tenanted,
renovated and strategically enhanced our portfolio. The
resulting aggregation of life science assets and over one million
square feet of zoned life science development potential created an
extremely valuable portfolio."
"This is an exciting, transformational transaction for the
Company. The sale and redeployment positions us to complement
and elevate the quality of our office portfolio through
acquisitions across some of the highest employment and population
growth cities in the south and west. Executing this strategy
will create a pathway to enhance our earnings per share, expand our
net asset value and strengthen our balance
A detailed presentation regarding the transaction can be found
on the Investor Relations section of the Company's website at
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 18-hour cities in the Southern and
Western United States. City Office
currently owns or has a controlling interest in 5.6 million square
feet of office properties. The Company has elected to be taxed as a
real estate investment trust for U.S. federal income tax
This press release contains certain "forward-looking statements"
within the meaning of the Private Securities Litigation Reform Act
of 1995, Section 27A of the Securities Act of 1933, as amended, and
Section 21E of the Securities Exchange Act of 1934, as amended.
Certain statements contained in this press release, including those
that express a belief, expectation or intention, as well as those
that are not statements of historical fact, are forward-looking
statements within the meaning of the federal securities laws and as
such are based upon the Company's current beliefs as to the outcome
and timing of future events. Forward-looking statements are
generally identifiable by use of forward-looking terminology such
as "approximately," "anticipate," "assume," "believe," "budget,"
"contemplate," "continue," "could," "estimate," "expect," "future,"
"hypothetical," "intend," "may," "outlook," "plan," "potential,"
"predict," "project," "seek," "should," "target," "will" or other
similar words or expressions. There can be no assurance that actual
forward-looking statements will be those anticipated by the
Company. They are not guarantees of future results and are subject
to risks, uncertainties and assumptions that could cause actual
results to differ materially from those expressed in any
forward-looking statement, including with respect to future
acquisition or disposition activity, if any, the terms on which we
may acquire or dispose of property in the future, if at all, and
future or expected cap rates. Factors that could cause actual
results to differ materially include, among other things, changes
to the Company's expected liquidity position, uncertainty regarding
acquisitions, dispositions or our operations, and the risk factors
set forth in the Company's Annual Report on Form 10-K for the year
ended December 31, 2020 and
subsequent filings with the United States Securities and Exchange
Commission (the "SEC"). Forward-looking statements presented in
this press release are based on management's beliefs and
assumptions made by, and information currently available to,
management. The forward-looking statements contained in this press
release are based on historical performance and management's
current plans, estimates and expectations in light of information
currently available to us and are subject to uncertainty and
changes in circumstances. There can be no assurance that future
developments affecting us will be those that we have anticipated.
Actual results may differ materially from these expectations due to
the factors, risks and uncertainties described above, changes in
global, regional or local political, economic, business,
competitive, market, regulatory and other factors described in our
news releases and filings with the SEC, including but not limited
to those described in our Annual Report on Form 10-K for the year
ended December 31, 2020 under the
heading "Risk Factors" and in our subsequent reports filed with the
SEC, many of which are beyond our control. Should one or more of
these risks or uncertainties materialize, or should any of our
assumptions prove to be incorrect, our actual results may vary in
material respects from what we may have expressed or implied by
these forward-looking statements. We caution that you should not
place undue reliance on any of our forward-looking statements. Any
forward-looking statement made by us in this press release speaks
only as of the date of this press release. Factors or events that
could cause our actual results to differ may emerge from time to
time, and it is not possible for us to predict all of them. The
Company does not guarantee that the assumptions underlying such
forward-looking statements contained in this press release are free
from errors. We undertake no obligation to publicly update any
forward-looking statement, whether as a result of new information,
future developments or otherwise, except as may be required by
applicable securities laws.
City Office REIT, Inc.
Anthony Maretic, CFO
SOURCE City Office REIT, Inc.