Boston Properties and Canada Pension Plan Investment Board (CPPIB) have partnered to buy a 47-acre office park in California for around $627.5m (€535.8m).

The newly formed joint venture has acquired Santa Monica Business Park in the Ocean Park neighbourhood of Santa Monica for around $627.5m, including $11.5m of costs.

As part of the joint venture, CPPIB will invest $147.4m for a 45% ownership in the Business Park. Boston Properties will provide customary operating, property management and leasing services to, and will invest $180.1m in the joint venture.

In addition, the acquisition was completed with $300m of financing.

Santa Monica Business Park is made up of 21 buildings totalling 1.2m net rentable square feet. The property is 94% leased.

Owen D. Thomas, the CEO of Boston Properties, said: ”With the acquisitions of Santa Monica Business Park and Colorado Center in 2016, Boston Properties along with its joint venture partners now owns 2.3m square feet and controls 24% of the Santa Monica Class A office market, creating a strong platform for us to continue to grow in the West LA markets.”

Hilary Spann, a managing director and head real estate investments at CPPIB Americas, said: ”The investment provides us with immediate scale in the West LA office market with a top-tier owner and operator, and we look forward to growing our relationship in the future.

“Santa Monica consistently sees strong demand, driven by technology and media firms in the area, and the supply constraints make this asset attractive for CPPIB to hold long term.”