Boston Properties partners with Singapore GIC and Canada Pension Fund to purchase US office space
July 14 (Reuters) – Boston Properties (BXP.N) announced it has partnered with up to $ 2 billion purchasing power potential with the Canada Pension Plan Investment Board and the fund Sovereign of Singapore GIC to acquire office buildings in the United States.
The partners will aim to bring a total of $ 1 billion in equity capital to the partnership and plan to borrow another $ 1 billion, the real estate investment trust said on Wednesday.
The deal comes as US rent prices remain low and vacancy rates persist, factors that are weighing down the value of office buildings and holding back transactions. Read more
“This new co-investment program underscores the attractiveness of investment opportunities in Class A office space in our markets,” said Owen Thomas, Managing Director of Boston Properties.
Boston Properties and CPP Investments will each allocate $ 250 million to the program, while GIC will contribute $ 500 million, the REIT said.
The companies will acquire and operate office buildings in major Boston markets, including Los Angeles, New York and San Francisco, the REIT said.
Hodes Weill & Associates acted as exclusive advisor to Boston Properties.
Reporting by Shreyasee Raj; Editing by Sriraj Kalluvila and Amy Caren Daniel
Our Standards: Thomson Reuters Trust Principles.