Proceeds from the new loan facility will be used to replace existing debt agreements and for other KBS REIT III liquidity needs including capital improvement and capital expenditures on office properties held by KBS REIT III.

“This new financing facility, the largest single financing transaction in KBS history, allows us to take advantage of favorable conditions in the debt markets, while providing new capital to further enhance the properties in the portfolio,” said KBS CEO Chuck Schreiber. “The 29 properties held by KBS REIT III are valued in excess of $3.5 billion and this loan encumbers 8 of the 29 properties. We believe leveraging a lower cost of capital to ensure that these Class-A buildings remain attractive and competitive to tenants will serve our investors well in the long-term.”

“The overwhelmingly positive interest in this financing facility and the large capital commitments from our banking relationships reflect the excellent reputation and asset management prowess of the KBS team,” said Robert Durand, executive vice president, financing at KBS. “Very few real estate fund sponsors have the ability or the lending relationships to coordinate and successfully execute a facility of this size and scope, and we are grateful for the confidence and trust that our lenders have placed with KBS.”

Bank of America is acting as joint lead arranger and administrative agent for a group of financial institutions providing the debt – including joint lead arrangers Wells Fargo and U.S. Bank.

The foregoing includes forward-looking statements within the meaning of the Federal Private Securities Litigation Reform Act of 1995. KBS REIT III intends that such forward-looking statements be subject to the safe harbors created by Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These statements include statements regarding the intent, belief or current expectations of KBS REIT III and members of its management team, as well as the assumptions on which such statements are based, and generally are identified by the use of words such as “may,” “will,” “seeks,” “anticipates,” “believes,” “estimates,” “expects,” “plans,” “intends,” “should” or similar expressions. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date they are made. KBS REIT III undertakes no obligation to update or revise forward-looking statements to reflect changed assumptions, the occurrence of unanticipated events or changes to future operating results over time, unless required by law. Such statements are subject to known and unknown risks and uncertainties which could cause actual results to differ materially from those contemplated by such forward-looking statements. KBS REIT III makes no representation or warranty (express or implied) about the accuracy of any such forward-looking statements. These statements are based on a number of assumptions involving the judgment of management.
The value of KBS REIT III’s real estate properties assumes the properties realize the projected net operating income and expected exit cap rates and that investors would be willing to invest in such properties at yields equal to the expected discount rates. Though the value represents appraisals of the real estate properties as of September 30, 2016, KBS REIT III can give no assurance in this regard. Even small changes to these assumptions could result in significant differences in the appraised values of the real estate properties. Forward-looking statements also depend on factors such as: future economic, competitive and market conditions; KBS REIT III’s ability to maintain occupancy levels and rental rates at its real estate properties; and other risks identified in Part I, Item 1A of the REIT’s Annual Report on Form 10-K for the year ended December 31, 2016, as filed with the SEC. Actual events may cause the value and returns on KBS REIT III’s investments to be less.