LOS ANGELES—AECOM Capital, an affiliate ofL.A.-based AECOM, launched in January 2013 with avision to fund real estate development opportunities using a fundmodel. In a year and a half, the new investment company hascommitted $100 million of capital and launched six developmentprojects worth $2.3 billion. Among those projects, four are locatedin Southern California, including the now famous project on six acres in Downtown LosAngeles' South Park neighborhood. Although AECOM Capital has hadsome major success this year, few know about the still-new companyand its innovative investment model. So, we sat down with the manbehind the model and the investment decisions, AECOM Capital CEO,John Livingston.
GlobeSt.com: How did AECOM Capital cometogether?
John Livingston: I come out of TishmanRealty & Construction. I was with that company for 20 years. Wesold the construction company to AECOM four years ago, and I spentsome time traveling around the globe to create a globalconstruction platform. About 18 months ago, I went to my CEO andthe board to suggest that we create a real estate platform becausewe had such tremendous resources in house, both design andconstruction from Tishman, and with capital and a balance sheet wecould create a real estate platform in a fund model. I put togethera business plan and said why don't you commit $150 million to meand I'll put up a small share of that, and we'll be joint venturepartners to invest in real estate projects. In doing so, we bothcontrol our destiny more and we will get yield over time on ourinvestments and we will also get short-term service revenue.
Continue Reading for Free
Register and gain access to:
- 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
*May exclude premium content
Already have an account?
Sign In Now
© 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.