Douglas Emmett, Inc., the California-based REIT, announced that in a joint venture with Qatar Investment Authority (QIA) it had acquired a 1,725,000 square foot office portfolio in Westwood for $1.34 billion, or approximately $777 per square foot. The JV secured a a non-recourse $580 million interest-only loan with a seven-year term in connection with the acquisition. The interest rate is floating at Libor plus 1.40%, which has been fixed at 2.37% annually for five years through an interest rate swap.
Douglas Emmett indicated that it plans to retain 20-30% of the equity in the joint venture, with the remaining interests being held by institutional partners. With this purchase, Douglas Emmett controls 74% of the Westwood Wilshire office corridor, where it already owned One Westwood, 10960 Wilshire, The Tower, 10880 Wilshire, Westwood Place and Westwood Center.
For QIA, this joint venture represents another step in its plans to significantly expand its US investment portfolio, and follows other large investments in real estate, such as in New York City last year. In 2015, QIA announced plans to invest $35 billion in North America over five years.
For more news and information visit Blumberg Partners.
No comments:
Post a Comment