New Tishman JV Acquires Stakes in Office Portfolio in Deal Estimated at $1.6B
- Apr 05, 2012
By Scott Baltic, Contributing Editor
A joint venture between Tishman Speyer and an unidentified large pension fund has acquired the assets of Tishman Speyer Office Fund, an Australian listed property trust/REIT, including whole or majority ownership interests in 16 U.S. office properties, Tishman announced yesterday. Including the JV’s acquisition of TSOF, the retirement of corporate-level debt and the assumption of property-level debt, the deal is worth about $1.6 billion, according to a person close to the deal who wished to remain anonymous.
The 16 properties fall into two distinct groups. Twelve were previously owned by a trio of entities: TSOF (which owned a large, but not majority, share), the Government of Singapore Investment Corporation Pte. Ltd., and an unnamed institutional investment entity (the smallest share). The new JV, which reportedly doesn’t yet have a specific name or designation, now owns both the first and last of these, which together now comprise a majority share.
The properties are 300 Park Avenue and CitySpire, New York; Greenwich American Centre, Greenwich, Conn.; Bala Plaza, Bala Cynwyd, Pa. (suburban Philadelphia); Franklin Center/227 W. Monroe and Franklin Center/222 W. Adams, Chicago; Plaza East I & II, Milwaukee; 520 Pike Tower, Seattle; One Bush Street and 595 Market Street, San Francisco; Bayside Towers, Foster City, Calif.; and 400 Castro Street, Mountain View, Calif.
The other part of the acquisition consists of the three-building Lakeside Complex in Loudoun County, Va., and Maple Plaza, 407 North Maple Drive and Beverly Mercedes Place, Beverly Hills, Calif. They had been owned by the TSOF affiliate and by unnamed investors, but are now owned entirely by the new JV.
For some time before this transaction, Commercial Property Executive was told, TSOF’s stock had been stalled around 50 cents AUD per share. The offer by Tishman that won over the fund’s shareholders reportedly was a generous 98.5 cents AUD a share, making that part of the deal worth about $347 million USD.