From left: Jean Michel and Rob Speyer
NEW YORK CITY—The Investment Management Corporation of Ontario and Tishman Speyer have formed a joint venture to create a portfolio of new developments and repositioned office and multifamily properties in major US gateway cities.
With IMCO's initial commitment of $500 million and additional co-investment opportunities of $250 million, IMCO and Tishman Speyer will jointly acquire and develop property in major supply-constrained US markets. Locations will include New York, Washington, Boston, Los Angeles, San Francisco, Chicago and Seattle. The joint venture will invest in new development opportunities and well-located office and multi-residential assets in need of renovation, and convert them into modern, Class A properties.
The program bolsters IMCO's goals of investing in high-quality assets and developing long-term and mutually beneficial strategic partnerships. For Tishman Speyer, it facilitates expansion in major US markets with value-add opportunities.
"IMCO has partnered with Tishman Speyer to leverage its worldwide presence, as well as deep local market knowledge," says Jean Michel, chief investment officer, IMCO. "This partnership allows us to access larger transactions where few bidders can compete." He adds Tishman Speyer's consistent track record in project delivery makes them an ideal partner.
"Demand is very strong for high quality office space and multifamily housing in US gateway cities, and we believe that will be the case for the foreseeable future," says Tishman Speyer president and CEO Rob Speyer. "This alliance will help to fuel our ability to help meet that demand, working with a partner that is financially well positioned and experienced in successful investment."
IMCO manages $63.3 billion of assets providing public-sector institutions with investment management services. It prefers to develop partnerships with full-service real estate organizations which provide competitive advantages such as market knowledge, deal accessibility, best-of-breed in-house expertise and strong reputations.
Based in New York, Tishman Speyer is active across 27 key global markets in the US, Latin America, Europe and Asia. The firm builds and manages office, residential and retail properties. They acquire, develop and operate a portfolio valued at approximately $94 billion across 411 assets.
The joint venture is targeting cities with supply constraints that will support higher rent growth. They opine development and value-add opportunities are economically attractive in the target markets with stabilized return on cost at significant spreads over existing cap rates on core assets.
Want to continue reading?
Become a Free ALM Digital Reader.
Once you are an ALM Digital Member, you’ll receive:
- Breaking commercial real estate news and analysis, on-site and via our newsletters and custom alerts
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical coverage of the property casualty insurance and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor
Already have an account? Sign In Now
*May exclude premium content© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
Betsy Kim
Betsy Kim was the bureau chief, East Coast, and New York City reporter for Real Estate Forum and GlobeSt.com. As a lawyer and journalist, Betsy has worked as the director of editorial and content for LexisNexis Lawyers.com, a TV/multi-media journalist for NBC and CBS affiliated TV stations in the Midwest, and an associate producer at Court TV.
