Luxor Capital Group Announces Its Disapproval of CommonWealth REIT Decision to Move Forward with its Offering

Luxor Capital Group Announces Its Disapproval of CommonWealth REIT Decision to
                        Move Forward with its Offering

Demands an Independent Committee be Formed to Pursue Strategic Alternatives;
Considers Litigation

PR Newswire

NEW YORK, March 1, 2013

NEW YORK, March 1, 2013 /PRNewswire/ -- Luxor Capital Group, LP, a New York
based investment manager ("Luxor"), beneficially owns and controls in excess
of 6.7 million common shares of CommonWealth REIT (NYSE: CWH), or
approximately 8.0% of the common shares outstanding. Luxor is releasing the
following open letter to the Trustees of CWH:

To the Board of Trustees:

On February 27, 2013, CommonWealth REIT ("CWH" or the "Company") announced
that it had priced 30,000,000 shares of Common Stock in a public offering (the
"Offering") at $19.00 per share. On February 28, 2013, the Issuer announced
the underwriters had exercised the overallotment option on 4,500,000 shares,
and on March 1, 2013, the Issuer announced that it had increased its maximum
tender offer amount with respect to outstanding debt to $650,000,000. In
response to these decisions by you, we are actively exploring litigation to
recoup the value destroyed by the Offering and are willing to use any and all
appropriate legal means to prevent further destruction of shareholder value.

We find it unconscionable that the Board of Trustees would vote to issue
shares significantly below-market in light of the offer on the table from a
credible buyer at a significant premium. We agree with CNBC's assessment of
the transaction, which they described as "a real-life poison pill" and their
mocking assessment of your decision to pursue the Offering in light of the
bid- "amazing- amazing that they did this".[1]

We demand the following steps be immediately taken by the Board of Trustees:

1.Form an Independent Committee with Independent Counsel and an Independent
    Financial Advisor to immediately pursue strategic alternatives;
2.Cease all asset acquisition and disposition activity until the conclusion
    of the independent strategic review;
3.Cease all equity offerings in CWH or indirectly through its majority owned
    subsidiary, Select Income REIT;
4.Do not seek to amend, in any way more favorable to REIT Management and
    Research LLC ("RMR"), the existing management agreement between CWH and
    RMR; and
5.Authorize, if you have not already done so, the Independent Trustees to
    retain their own independent counsel. Given the internal conflicts of
    interest we currently perceive at the Board level, we believe that CWH
    counsel cannot adequately represent the Independent Trustees and therefore
    that the Independent Trustees cannot adequately represent shareholders.

Luxor Capital Group, LP



Media Contact:
Norris Nissim
212-763-8041
General Counsel of Luxor Capital Group, LP

[1] CNBC, The Faber Report, February 28, 2013.



SOURCE Luxor Capital Group, LP