Hudson Pacific, Blackstone Partner on Vancouver Asset
- Mar 29, 2019
A joint venture between Hudson Pacific Properties and Blackstone Property Partners will acquire and renovate a 1.4 million-square-foot office and retail complex in downtown Vancouver, Canada.
Blackstone will own 80 percent of the asset and serve as managing partner, while Hudson Pacific will own 20 percent and serve as operating partner. The deal is expected to close in the second quarter of this year.
Bentall Centre consists of four Class A office towers that together total 1.3 million square feet of space, in addition to 140,000 square feet of retail space. The office portion of the property is 97 percent leased, with major tenants including Bank of Montreal, Deloitte Management Services, WeWork and CIBC Markets.
The partnership plans to fully renovate the retail promenade at the property, as well as upgrade the indoor and outdoor common areas at the four office buildings. Renovations will include signage, furniture, finishes, fixtures and landscaping. Included in the acquisition is the option to build by-right an additional office tower at the site.
The five-acre office campus is situated in the financial district of Vancouver, at the intersection of Burrard and Dunsmuir Streets. The property offers easy access to British Columbia Highway 99 and the Trans-Canada Highway as well as the Burrard SkyTrain Station.
“We are making this acquisition through BPP, our Core+ strategy, which is a permanent capital vehicle, and plan to own and invest in this property for the long term,” said Nadeem Meghji, head of real estate Americas at Blackstone, in prepared remarks.
The deal marks the fifth acquisition between Hudson Pacific and Blackstone over the last several years, the largest being the $3.5 billion purchase of a San Francisco office portfolio in 2015. Last year, Hudson Pacific sold four office assets in California to separate buyers for $255 million, with proceeds going toward value-add acquisitions.