US real estate manager Bridge Investment Group has formed a $100m (€97m) office investment partnership with Grosvenor’s diversified property investments business.
NYSE-listed Bridge Investment said the joint venture will deploy $100m of equity, with the option for follow-on investments, to buy and amenitise office assets.
The first asset acquired in the joint venture is the nine-storey Camelback Center building, located in Phoenix, Arizona in the Camelback Corridor. The 236,553sqft asset is 82% leased.
John Ward, CIO for Bridge’s commercial office strategy, said: “The dislocation in the markets has created an opportunity for Bridge and Grosvenor to capitalize on under-amenitised office properties where the previous owner may not have the capex budget, time horizon, or financing access to turn strategically positioned office buildings into state-of-the-art assets.
“The Bridge built-in property management and leasing capabilities, combined with our focus on environmental sustainability, including our collaboration with Bridge’s Solar team, enable us to create incremental value from assets that we believe are well positioned but not yet achieving their full potential.”
Andy Yates, CIO of Grosvenor’s diversified property investments, said: “We’re pleased to have entered into our second partnership with Bridge, which shares our ambition to provide exceptional workplaces for businesses and employees centred around sustainability and wellness.
“Looking ahead we have a strong belief in the resilience of high-quality and well-located offices in growth cities and continue to seek similar opportunities with specialist managers as we expand Grosvenor’s Diversified Property Investments business and help diversify its global portfolio.”
To read the latest edition of the latest IPE Real Assets magazine click here.