SINGAPORE: Singapore sovereign wealth fund GIC has formed a joint venture with a group of investors to acquire a portfolio of Class A office assets in California’s Playa Vista, a district on the west side of Los Angeles.
According to a press release on Tuesday (May 22), the portfolio assets are Water’s Edge – a 259,000-sq-ft, two-building creative office campus in north-west Playa Vista – and a centrally-located 251,000-sq-ft, five-building multi-tenant complex called Playa Jefferson.
AdvertisementThe joint venture, led by real estate investment management firm Rockwood Capital, has also commenced construction on the second phase of Water’s Edge, a 160,000-sq-ft office building which will be known as WE3.
Construction is expected to be completed in the second quarter of 2020, after which, Water’s Edge will feature approximately 450,000 sq ft of Class A office space in a supply-constrained market, said the press release.
Mr Lee Kok Sun, GIC Real Estate’s chief investment officer said this investment reflects GIC’s long-term confidence in the West Los Angeles office market.
“We expect continued growth of the technology and creative media industries to benefit this dynamic national and international gateway. We also look forward to expanding our partnership with Rockwood Capital, given its strong track record in this sector across the US,” he added.
AdvertisementAdvertisementDescribing Playa Vista as “a dynamic submarket that continues to evolve”, Rockwood Capital’s managing partner Peter Kaye said: “These investments consist of high quality product in visible campus settings. We believe that world class tenants will continue to migrate to these locations and that, over time, investments in such locations will outperform.”
Being the second-largest metro economy in the US and a key centre for media and entertainment content creation, Los Angeles features strong growth and attractive real estate fundamentals.
The Playa Vista area, which is part of the Southern California technology hub often known as the “Silicon Beach”, also continues to attract many growing technology and creative tenants, the press release said.
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