MWest acquires R&D portfolio

MWest Properties, a venture formed by DivcoWest, Ivanhoé Cambridge and TPG Capital, has acquired a portfolio of research and development campuses in San Jose for $200 million.

MWest Properties, a venture backed by DivcoWest, Ivanhoé Cambridge and TPG Capital, has acquired a portfolio of three San Jose campuses from Washington, DC-based real estate investment company Carr Properties.  Although financial terms of the transaction were not disclosed, data provider Real Capital Analytics listed the total price of the three assets at $200 million.
The acquisition, which consists of 12 research and development buildings as well as corporate offices, totals 825,000 square feet. Major tenants include Boston Scientific, the North American headquarters of Taiwan Semiconductor Manufacturing and the corporate headquarters of Tessera. 
“These are quality, well-managed assets with good credit tenancies in place in a market that has seen rental increases and improved vacancy rates and that continues to experience strong employment growth,” said Justin Wesley, managing director of MWest, in a statement. “The addition of these assets creates tremendous synergies within our existing platform and significant value-add opportunities.” 
San Francisco-based DivcoWest, Montreal-based Ivanhoé Cambridge – the real estate subsidiary of the Caisse de dépôt et placement du Québec – and Fort Worth, Texas-based private equity firm TPG formed MWest Properties in December 2012 in order to acquire assets from the now-defunct REIT Mission West Properties. MWest purchased the initial portfolio for nearly $800 million, including approximately $400 million in equity and $398 million in assumed debt and other obligations. 
MWest’s holdings now include more than 7.1 million square feet of commercial office and R&D space across 85 properties in the Silicon Valley. The firm plans to make additional property acquisitions in the Silicon Valley and San Francisco areas in the future, according to the statement.