The Franklin Center was
one of the 16
properties in the
portfolio.

NEW YORK CITY-Tishman Speyer acquired 16 office properties spread across the US, according to the company, scooping up the assets of Tishman Speyer Office Fund, an Australia-based publicly-traded property trust.

The group now holds a majority interest in properties that include 300 Park Ave. here, Franklin Center in Chicago and One Bush Street in San Francisco. The minority interest will continue to be held by an affiliate of the Government of Singapore Investment Corp. 

This JV between Tishman Speyer and an undisclosed what was described as a “large pension fund” has an interesting backstory, which sources close to the deal discussed. Tishman Speyer privatized the trust; it bought it out at a premium in Australia and it was accepted by the shareholders. Following this transaction, the company then paid the shareholders and assumed $700M of property debt. 

It then formed the aforementioned JV, sources say, with about $900 million and around $800 million of this was partner’s money. Tishman Speyer funded the rest themselves to pay off corporate level debt and TS also bought out a small stake held by a separate institutional investment entity. It was revealed by the same sources that the total value of the deal including assumed debt exceeds $1.6 billion.

“This transaction marks the disposition by TSOF of its assets on terms that represent a successful outcome for all stakeholders,” says Tishman Speyer Co-CEOs Jerry Speyer and Rob Speyer in the same statement.