Hudson Pacific and Allianz form joint venture to own and operate
property
Iconic asset includes ~200,000 square feet of Class A office and
~75,000 square feet of retail
LOS ANGELES--(BUSINESS WIRE)--
Hudson Pacific Properties, Inc. (NYSE: HPP) and Allianz Real
Estate today announced that they have formed a joint venture to
acquire a leasehold interest in the land and improvements of the
historic Ferry Building from Equity Office, an affiliate of the
Blackstone Group, for $291 million before prorations, credits and
closing costs.
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The Ferry Building, which includes 192,532 square feet of Class A office
and 75,486 square feet of retail, is located along San Francisco’s
popular waterfront Embarcadero at the foot of Market Street, and is one
of the city’s most famous landmarks. Hudson Pacific owns a 55% interest
in the joint venture and will serve as the managing member and
day-to-day operator of the property, while Allianz owns a 45% interest.
The all-cash transaction was approved by the Port of San Francisco and
is expected to close this week. The remaining term on the ground lease
is 49 years.
“The acquisition of the Ferry Building fits perfectly with our strategy
of identifying creative ways to improve the performance of exceptional
real estate within global centers of tech innovation,” said Victor
Coleman, Chairman and CEO of Hudson Pacific Properties. “As a long-term
owner-operator of Bay Area real estate, we take our stewardship of this
world-renowned San Francisco landmark seriously. We are thrilled about
the opportunity to further position the Ferry Building as a premier
Class A office and retail destination through new amenities, activities
and events. We are pleased to partner with Allianz on this transaction,
and look forward to exploring additional investment opportunities
together.”
“Investing alongside Hudson Pacific Properties, we are pleased to become
a part of the history and enduring legacy of this magnificent property,”
said Christoph Donner, Chief Executive Officer of Allianz Real Estate of
America. “Since it opened in 1898, the Ferry Building has been preserved
and improved, evolving into a great architectural achievement. Visitors,
vendors and tenants are attracted by its unparalleled offerings. This
opportunity forges a strong alliance among like-minded investors that
see significant potential in generational real estate. It is our intent
to protect and enhance the Ferry Building’s stature, vitality and
contributions to the community.”
“We are proud to have been part of the Ferry Building’s evolution over
the past several years as an icon of the San Francisco waterfront, since
our initial investment through Equity Office and we are very pleased to
be selling to Hudson Pacific Properties and Allianz, who will be
outstanding and visionary owners and will continue as great stewards of
this historic property,” said Kenneth Caplan, Global Co-Head of Real
Estate at Blackstone. “We’d like to thank the Ferry Building’s team for
their leadership and fully believe in their strategy for the future.”
Featuring unrivaled amenities, picturesque public open spaces and
breathtaking views of the San Francisco Bay, the Ferry Building’s
waterfront neighborhood has attracted a host of the city’s esteemed
Fortune 500, blue-chip technology and professional services firms. It is
the center of a transit hub that connects all of San Francisco’s
neighborhoods and the surrounding bay communities.
The Ferry Building is fully leased to top-tier companies, including SS&C
Technologies, Inc., Meltwater, Inc., Meritage Group LP and Niantic,
Inc., as well as popular restaurants and retail tenants such as The
Slanted Door and Blue Bottle Coffee. The Ferry Building Marketplace, a
world class public food market, is organized along a dramatic indoor
street, the Nave, and attracts more than 8.8 million visitors a year.
Hudson Pacific will provide details regarding the impact of the Ferry
Building acquisition on full-year 2018 FFO guidance upon closing.
About Hudson Pacific Properties
Hudson Pacific Properties is a visionary real estate investment trust
that owns and operates more than 17 million square feet of marquee
office and studio properties. Focused on premier West Coast epicenters
of innovation, media and technology, its anchor tenants include Fortune
500 and leading growth companies such as Netflix, Google, Square, Uber,
NFL Enterprises and more. Hudson Pacific is publicly traded on the NYSE
under the symbol HPP, and listed as a component of the Russell 2000® and
the Russell 3000® indices. For more information visit HudsonPacificProperties.com.
Forward-Looking Statements for Hudson Pacific Properties
This press release may contain forward-looking statements within the
meaning of the federal securities laws. Forward-looking statements
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strategies, anticipated events or trends and similar expressions
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may cause actual results to differ significantly from those expressed in
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are not guarantees of future performance. Furthermore, the company
disclaims any obligation to publicly update or revise any
forward-looking statement to reflect changes in underlying assumptions
or factors, of new information, data or methods, future events or other
changes. For a further discussion of these and other factors that could
cause the company’s future results to differ materially from any
forward-looking statements, see the section entitled “Risk Factors” in
the company’s Annual Report on Form 10-K for the year ended December 31,
2017 filed with the Securities and Exchange Commission, or SEC, on
February 16, 2018, and other risks described in documents subsequently
filed by the company from time to time with the SEC.
About Allianz
The Allianz Group is one of the world's leading insurers and asset
managers with more than 88 million retail and corporate customers.
Allianz customers benefit from a broad range of personal and corporate
insurance services, ranging from property, life and health insurance to
assistance services to credit insurance and global business insurance.
Allianz is one of the world’s largest investors, managing over
660 billion euros on behalf of its insurance customers while our asset
managers Allianz Global Investors and PIMCO manage an additional
1.4 trillion euros of third-party assets. Thanks to our systematic
integration of ecological and social criteria in our business processes
and investment decisions, we hold the leading position for insurers in
the Dow Jones Sustainability Index. In 2017, over 140,000 employees in
more than 70 countries achieved total revenue of 126 billion euros and
an operating profit of 11 billion euros for the group.
About Allianz Real Estate
Allianz Real Estate is the strategic real estate organization within the
Allianz Group and a leading international real estate investment and
asset manager. Allianz Real Estate develops and executes worldwide
tailored portfolio and investment strategies on behalf of the Allianz
companies, considering direct as well as indirect investments and real
estate loans. The operational management of investments and assets is
currently performed in 5 regions, West Europe (Belgium, France, Italy,
Luxembourg, Portugal, Spain), North & Central Europe (Austria, CEE,
Germany, Ireland, Nordics), Switzerland, USA and Asia Pacific. The
headquarters of Allianz Real Estate are located in Munich and Paris.
Allianz Real Estate has approximately 56 billion euros assets under
management.
These assessments are, as always, subject to the disclaimer provided
below.
Forward-Looking Statements for Allianz and Allianz Real Estate
The statements contained herein may include prospects, statements of
future expectations and other forward-looking statements that are based
on management's current views and assumptions and involve known and
unknown risks and uncertainties. Actual results, performance or events
may differ materially from those expressed or implied in such
forward-looking statements.
Such deviations may arise due to, without limitation, (i) changes of the
general economic conditions and competitive situation, particularly in
the Allianz Group's core business and core markets, (ii) performance of
financial markets (particularly market volatility, liquidity and credit
events), (iii) frequency and severity of insured loss events, including
from natural catastrophes, and the development of loss expenses, (iv)
mortality and morbidity levels and trends, (v) persistency levels, (vi)
particularly in the banking business, the extent of credit defaults,
(vii) interest rate levels, (viii) currency exchange rates including the
EUR/USD exchange rate, (ix) changes in laws and regulations, including
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competitive factors, in each case on a local, regional, national and/or
global basis. Many of these factors may be more likely to occur, or more
pronounced, as a result of terrorist activities and their consequences.
The company assumes no obligation to update any information or
forward-looking statement contained herein, save for any information
required to be disclosed by law.
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Hudson Pacific Properties
Laura Campbell
Senior Vice
President, Investor Relations & Marketing
(310) 622-1702
lcampbell@hudsonppi.com
or
Allianz
Real Estate of America LLC
Jennifer Triano
Director, Closing &
Communications
(212) 235-0458
jennifer.triano@azoa.com
Source: Hudson Pacific Properties, Inc.