SANTA MONICA, Calif.,
April 26, 2017 /PRNewswire/ --
Douglas Emmett, Inc. (NYSE:DEI), a real estate investment trust
(REIT), has acquired two additional office buildings in downtown
Santa Monica totaling
approximately 293,000 square feet for a combined purchase price of
approximately $352.8 million.
The buildings, located at 1299 Ocean Avenue and 429 Santa Monica
Boulevard, are being purchased by an existing joint venture that
includes Qatar Investment Authority ("QIA"). The same
consolidated joint venture also acquired 12100 Wilshire Boulevard
and 233 Wilshire Boulevard in 2016. A portion of the purchase
price was provided by a $142 million
secured, non-recourse interest only loan to the joint venture that
matures July 2019 and bears interest
at Libor plus 1.55%. Douglas Emmett provided 20% of the
equity capital and manages the joint venture.
1299 Ocean is an 11-story oceanfront office building comprised
of 206,000 square feet with private balconies and an open park
plaza facing the coastline. With the addition of 1299 Ocean,
the Douglas Emmett portfolio now includes all four Class "A" office
buildings in Los Angeles that
command significant rent premiums as a result of their direct
beachfront views.
429 Santa Monica is an 87,000 square feet office building
located in the heart of downtown Santa
Monica. The building has both ocean and mountain views, and
is only 1 block from the world renowned 3rd Street
Promenade and three blocks from a light rail station.
These acquisitions increase Douglas Emmett's ownership share of
the downtown Santa Monica Class "A" office market from 55% to
71%. They also represent a significant lease up opportunity,
with 1299 Ocean at 79% leased and 429 Santa Monica at 70% leased
(after known move-outs), significantly below the 97% average of
Douglas Emmett's existing Santa
Monica portfolio.
Douglas Emmett's total office portfolio now consists of 69
office properties totaling approximately 18 million square
feet. Douglas Emmett also owns ten premier apartment
communities in Los Angeles and
Honolulu comprising 3,320 units,
and approximately 850 residential units under
development.
For QIA, this acquisition represents another step in its plans
to significantly expand its US investment portfolio, and follows
other large Class "A" investments in real estate, such as the
Manhattan West project in New York
City in 2015, the acquisitions of the Westwood Office
Portfolio with Douglas Emmett, and a 9.9% interest in Empire State
Realty Trust in 2016. QIA has announced plans to invest
$35 billion in North America over five years.
About Douglas Emmett, Inc.
Douglas Emmett, Inc. (DEI) is a fully integrated,
self-administered and self-managed real estate investment trust
(REIT), and one of the largest owners and operators of high-quality
office and multifamily properties located in the premier coastal
submarkets of Los Angeles and
Honolulu. Douglas Emmett focuses on owning and acquiring a
substantial share of top-tier office properties and premier
multifamily communities in neighborhoods that possess significant
supply constraints, high-end executive housing, and generous
lifestyle amenities. For more information about Douglas
Emmett, please visit our website at www.douglasemmett.com.
About Qatar Investment Authority (QIA)
Qatar Investment Authority was founded by the State of Qatar in 2005 following the vision of
HH Sheikh Hamad bin Khalifa Al Thani
to strengthen the country's economy by diversifying into new asset
classes. Building on the heritage of Qatar investments dating back more than three
decades, its growing portfolio of long-term investments help
complement the state's huge wealth in natural resources.
Headquartered in Doha, and now
with a subsidiary in New York
called QIA Advisory, QIA is structured to operate at the very
highest levels of global investing. As a world class investor, QIA
adheres to the strictest financial and commercial
disciplines. It has a strong track record of investing in
different asset classes, including listed securities, property,
alternative assets and private equity in all the major capital
markets as well as the newer emerging markets.
For more information, please visit our website at www.qia.qa or
contact:
Media:
David Henderson, Finsbury UK: +44 20
7251 3801
Mallory Weinberg, Finsbury
US: +1 646 805 2043
Safe Harbor Statement
Except for the historical facts, the statements in this press
release are forward-looking statements based on the beliefs of,
assumptions made by, and information currently available to us
about known and unknown risks, trends, uncertainties and factors
that are beyond our control or ability to predict. Although
we believe that our assumptions are reasonable, they are not
guarantees of future performance and some will inevitably prove to
be incorrect. As a result, our actual future results can be
expected to differ from our expectations, and those differences may
be material. Accordingly, investors should use caution in
relying on forward-looking statements to anticipate future results
or trends. For a discussion of some of the risks and
uncertainties that could cause actual results to differ from those
contained in the forward-looking statements, see "Risk Factors" in
our Annual Report on Form 10-K filed with the U.S. Securities and
Exchange Commission.
Stuart McElhinney, Vice
President – Investor Relations
310.255.7751 smcelhinney@douglasemmett.com
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SOURCE Douglas Emmett, Inc.