NYSE-listed Hudson Pacific Properties, which specialises in film studios and offices for media and tech companies, has sold $189m (€175m) worth of land and debt to bolster its balance sheet.
The real estate investment trust said it sold Cloud 10, a 5.3-acre land parcel in North San Jose, for $43.5m, as well as two tranches and 49% of a third tranche of debt associated with its Hollywood Media Portfolio, for $145.8m. Hudson Pacific retains a 51% ownership stake in the third tranche valued at $30.2m.
The company said it will use the net proceeds to repay amounts outstanding on its unsecured revolving credit facility.
Victor Coleman, Hudson Pacific’s chairman and CEO, said: “Strong execution on these sales has further strengthened our balance sheet and positions us well to navigate future loan maturities.
“In addition, we have successfully improved covenant compliance with minimal impact to [funds from operations], as we continue to enhance our ability to create value for shareholders going forward.”
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