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GlobeSt.com UPDATE: IPC Scores Big on Flip of BofA Center

SAN FRANCISCO-The Toronto-based REIT focused on US real estate says its one-year-old $49-million equity investment in the Bank of America Center is turning into $85 million thanks to the pending $1.05 billion sale of the 1.8 million-sf development.

By Brian K. Miller | Updated on October 06, 2005

SAN FRANCISCO-The pending $1.05-billion sale of the Bank of America Center here is turning IPC US REIT’s year-old $49-million preferred equity investment in the 1.8 million-sf complex into more than $85 million. The proceeds represent a 54% internal rate of return for the Toronto-based company focused on US real estate.

Without saying whether it is the company’s best return on investment to date, the company’s chief investment officer Dov Meyer tells GlobeSt.com it is “a great return” for the company. “We’d be happy if they were all like this,” he says.

In September 2004, IPC invested $49 million ($51 million incl. fees) of preferred equity in Bank of America Center as part of the then new owner’s effort to consolidate ownership of the asset into a single entity in preparation for a quick flip. The effort was successful, and the property was tied up recently by Hudson Waterfront Associates on behalf of a trio of Hong Kong investors.

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