Orion Properties Inc., an internally managed real estate investment trust, has launched a formal strategic options review and entered into a cooperation agreement with The Kawa Fund Limited. The process will evaluate a potential sale of the company, mergers, additional acquisitions, or continuing to operate as an independent public REIT. 

“Over the past three years, the Board has devoted time to considering potential avenues for Orion to potentially pursue in addition to our stand-alone business plan,” the Board stated. “The strategic options review process will provide further opportunity to consider a range of potential strategic alternatives to maximize stockholder value.” 

As part of the agreement, Kawa has withdrawn its notice to nominate five individuals for election to Orion’s Board of Directors. The Board has directed management, together with external financial and legal advisors, to run a process focused on “actionable” alternatives.  

Orion’s portfolio includes traditional office properties alongside governmental, medical office, flex/laboratory and R&D, and flex/industrial assets. The company was founded on July 1, 2021, and was spun off from Realty Income on November 12, 2021. 

Wells Fargo is serving as the company’s lead financial advisor, J.P. Morgan is acting as an additional financial advisor, and Hunton Andrews Kurth LLP is serving as legal counsel.