Tishman Speyer and an institutional investor have jointly acquired a 16-property office portfolio in the US for $1.6 billion. The New York-based firm declined to provide further specifics on the deal, but a source familiar with the matter said the investor is the National Pension Service (NPS) of Korea.
PERE understands that NPS invested more than $800 million in the transaction, while Tishman put in $92 million of its own capital, which brought the partners’ total investment to more than $900 million. The parties also assumed existing debt on the properties as part of the acquisition.
The joint venture now owns a 51 percent stake in a portfolio of 12 Class A office properties located in major US cities such as New York, Chicago, San Francisco and Seattle. An affiliate of the Government of Singapore Investment Corporation will continue to hold a 49 percent interest in those assets, which include 300 Park Avenue in New York, Franklin Center in Chicago and One Bush Street in San Francisco. In addition, NPS and Tishman now own a 100 percent stake in three properties in Beverly Hills, California and a three-building suburban complex in northern Virginia.
Yesterday, Tishman announced the completion of the privatisation of the Tishman Speyer Office Fund, an Australia-based publicly-traded property trust that owned the interests in the 16-asset portfolio. The sale involved a payout of 98.7 cents per unit to public shareholders of the trust, including Madison International Realty, which held a 26 percent stake in the company.