Cohen & Steers Invests $300M With Hudson Pacific Properties
This move will support HPP’s balance sheet recapitalization.
On behalf of its clients’ accounts, Cohen & Steers Inc. has invested $300 million in West Coast office REIT Hudson Pacific Properties Inc., as a cornerstone investor, to support HPP’s balance sheet recapitalization.
The purchase reflects 43 percent of HPP’s $690 million offering.
“We are pleased to have successfully closed on this $690 million offering, which makes capital available to execute on our strategic priorities,” Victor Coleman, Hudson Pacific’s chairman & CEO, told Commercial Property Executive.
He added that this major investment from Cohen & Steers, along with contributions from other investors, is, among other factors, “an indication of the improving West Coast office fundamentals and the potential for pending state and federal incentives to boost studio production.”
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In a prepared statement, Jason Yablon, executive vice president & head of Listed Real Estate for Cohen & Steers, highlighted the REIT’s confidence that the West Coast office market is recovering and likely to continue its improvement in the coming years.
Hudson Pacific’s new ability to recapitalize its balance sheet positions, on top of its existing high-quality portfolio, Yablon added, will let the company reduce its debt, extend current debt maturities and position itself to take advantage of an imminent occupancy upsurge in the West Coast office market.
Two active players
In January, Cohen & Steers Income Opportunities REIT Inc. and joint venture partner Phillips Edison & Co. acquired Oak Grove Shoppes, a 142,000-square-foot, grocery-anchored shopping center in Orlando, Fla., from Kitson & Partners.
The REIT took an 80 percent stake, while PECO took the remaining 20 percent. This was the second acquisition for the $300 million joint venture, which focuses on acquiring open-air, grocery-anchored shopping centers.
And in April, Hudson Pacific Properties obtained a $475 million CMBS loan for a portfolio of six West Coast office properties totaling more than 1.4 million square feet. Goldman Sachs was the lead manager and bookrunner, with Morgan Stanley and Wells Fargo Securities as co-lead managers and joint bookrunners.
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