Singapore’s GIC has partnered with Canada Pension Plan Investment Board (CPP Investments) and Boston Properties (BXP) to create a $1bn (€847.2m) US office real estate investment venture.
The sovereign wealth fund is committing $500m to the partnership which will also receive $250m each from CPP Investments and NYSE-listed BXP.
In a joint statement, the companies said the newly created co-investment programme intends to selectively acquire and operate office properties in BXP’s core markets of Boston, Los Angeles, New York, San Francisco and Washington, DC, as well as Seattle.
Over the next two years, BXP will provide CPP Investments and GIC with exclusive first offers to form joint ventures with BXP to invest in acquisition opportunities that meet the target investment criteria of the programme.
Adam Gallistel, managing director of Americas Real Estate at GIC, said: “We are confident that BXP will identify assets that serve this need and position our venture to capitalise on an uptick in demand stemming from a return to the office and the reopening of America’s great cities.”
Lee Kok Sun, CIO of real estate at GIC, said: “As a leading global, long-term investor, we seek to invest in world-class properties with world-class operators. We are thrilled to partner with CPP Investments and BXP on this endeavour.
“GIC’s capital and investment discipline, coupled with BXP’s operating expertise, create a strong consortium that positions us well to identify and invest in quality office properties across the US.”
Owen Thomas, CEO of Boston Properties, said: “We are delighted to expand our relationship with CPP Investments and to begin a new relationship with GIC, two highly respected and experienced real estate investors.
“This new co-investment program underscores the attractiveness of Class A office investment opportunities in our markets and BXP’s track record of creating long-term value at the property level.”
Peter Ballon, managing director, global head of real estate, CPP Investments, said: “Employers in top global cities continue to seek best-in-class office environments that will attract and retain talent.
“By expanding our relationships with both BXP and GIC in this new program, we will be strongly positioned to serve this ongoing market need, and in turn generate returns for our Fund contributors and beneficiaries.”
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