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GIC in venture to acquire and develop office portfolio in California's 'Silicon Beach'
GIC and a group of investors have formed a joint venture led by Rockwood Capital to acquire a portfolio of Class A office assets in Playa Vista, California, Singapore’s sovereign wealth fund announced on Tuesday.
The portfolio assets are Water’s Edge, a 259,000 square foot, two-building creative office campus and Playa Jefferson, a 251,000 sq ft, five-building multi-tenant complex.
The venture has also commenced construction on the second phase of Water’s Edge – a 160,000 sq ft office building which will be known as WE3. Construction is expected to be completed in the second quarter of 2020. Thereafter, Water’s Edge will feature approximately 450,000 sq ft of Class A office space "in a supply-constrained market", said GIC.
The fund noted that Los Angeles is the second-largest metropolitan economy in the US and a key centre for media and entertainment content creation. The Playa Vista area, which is part of the Southern California technology hub dubbed ‘Silicon Beach’, continues to attract many growing technology and creative tenants, said GIC.
Lee Kok Sun, GIC Real Estate's chief investment officer, said, “This investment reflects GIC’s long-term confidence in the West Los Angeles office market. We expect continued growth of the technology and creative media industries to benefit this dynamic national and international gateway.
"We also look forward to expanding our partnership with Rockwood Capital, given its strong track record in this sector across the US
Rockwood Capital is a San Francisco investor which bought Water's Edge for US$190 million in January from a partnership that included Los Angeles developer Robert Maguire, who built the first two buildings there in 2002 when Playa Vista was a new, unproven office market, according to the Los Angeles Times.