SAN FRANCISCO—Hudson Pacific Properties Inc. has entered into a definitive asset purchase agreement under which Hudson will acquire Equity Office Properties' San Francisco Peninsula and Silicon Valley portfolio (the “EOP Northern California Portfolio”) from Blackstone Real Estate Partners V and VI in a stock and cash transaction valued at $3.5 billion.
According to sources involved, this deal is “solidifies” Hudson's position as the leading West Coast office REIT.
Upon closing of the transaction, Hudson is expected to have an equity market capitalization of $3.7 billion and total enterprise value of approximately $6.5 billion.
“The acquisition of the EOP Northern California Portfolio perfectly aligns with our strategy to acquire high-quality office properties in West Coast markets poised for continued growth through off-market transactions,” explains Victor J. Coleman, Hudson's chairman and CEO. “Hudson has long targeted these two Northern California regions for expansion, and while we expect the transaction to be immediately accretive to FFO, we also intend to move quickly to employ our leasing, repositioning and development expertise to extract additional value for our stockholders.”
GlobeSt.com will update this breaking news story later with more details including more about financing and more on terms of the agreement. Be sure to check back.
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