Hudson Completes EOP/Blackstone Deal

SAN FRANCISCO– Hudson Pacific Properties Inc. completed its previously announced acquisition of Equity Office Properties’ Peninsula and Silicon Valley portfolio from Blackstone Real Estate Partners V and VI for approximately 63.5 million common shares and operating partnership units and $1.75 billion in cash (before certain credits, proration adjustments and closing costs). The EOP Northern California portfolio consists of 26 high-quality office assets totaling approximately 8.2 million square feet and two development parcels in prime Bay Area submarkets. In addition to a roster of blue-chip tenants, the portfolio’s below-market rents and occupancy provide Hudson the opportunity to create value by leveraging leasing and repositioning expertise. Upon closing, Hudson’s combined portfolio totals 53 properties or 17.3 million square feet, including land for development in high-growth, high-barrier-to-entry submarkets throughout Northern and Southern California as well as the Pacific Northwest.

Victor J. Coleman, Hudson’s chairman and chief executive officer, tells GlobeSt.com: “The transaction’s closing is a momentous event for our company. These 26 assets are located in some of the most sought-after real estate markets in the U.S., and have a strong tenancy of leading growth and Fortune 500 companies – several in the tech sector, which perfectly aligns with our existing portfolio and strategy. Our team has executed flawlessly to date. I’m confident that with the same level of diligence and determination, we are well prepared to take on the work that lies ahead.”