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SACRAMENTO-California’s Department of General Services has chosen a partnership led by Houston-based Hines and Antarctica Capital Real Estate LLC as the buyer for an 11-property, 7.3-million-square foot portfolio of state office buildings that it has been marketing as a sale-leaseback since early this year. The winning offer of $2.33 billion was one of more than 300 bids and will generate more than $1.2 billion for the state general fund as well as $1.09 billion to pay off bonds on the buildings.

The all-cash offer will be financed with “a typical debt and equity ratio with the general partners and investors providing approximately 40% of the purchase price, and a major financial institution supplying the balance as a loan to the new owners,” according to a prepared statement by the state. The state will lease back the buildings from the Hines-Antarctica partnership, which is called California First, over the next 20 years. All of the leases allow the state to buy back any or all of the buildings at any time during the 20-year term.

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