Hudson Pacific Properties has announced the successful divestment of a land parcel in Silicon Valley and certain tranches of a loan secured by its Hollywood Media Portfolio, generating $189.3 million in gross proceeds through two separate transactions. The buyers have not been disclosed.
The sales included Cloud 10, a 5.3-acre land parcel located in North San Jose, which was sold for $43.5 million before prorations and closing costs.
Additionally, Hudson Pacific sold 100% of two tranches and retained a 51% ownership stake in the third tranche with a notional value of $30.2 million from its Hollywood Media Portfolio debt for gross proceeds totaling $145.8 million.
According to Victor Coleman, chairman and CEO of Hudson Pacific Properties: “These sales demonstrate our strong execution capabilities while further strengthening our balance sheet to navigate future loan maturities.” He also added that these actions have had minimal impact on FFO (funds from operations) as they continue to enhance their ability to create value for shareholders moving forward.
The Los Angeles-based REIT used the net proceeds from these transactions to repay amounts outstanding on its unsecured revolving credit facility.
Pictured: Sunset Gower Studios owned by Hudson Pacific Properties.
Hudson Pacific Properties recently announced successful divestments totaling $189.3 million through two separate transactions involving a land parcel in Silicon Valley and certain portions of their Hollywood Media Portfolio loan secured by various tranches.The specific details include:
– A sale price amounting up to$43 .5million before prorations & closing costs was achieved via Cloud10 -a sprawling pieceofland spanning over an area measuring approximately five acres situated at North San Jose
– Sale proceedings worth$145 .8million were generated after selling off all shares associated withtwo outof threetranche components linkedtothe aforementioned portfolio;however,the company still retains majority control over one tranche with a notional value of $30.2 million
Victor Coleman, the Chairman & CEO of Hudson Pacific Properties, stated that these sales were executed flawlessly and have further strengthened their financial position to tackle future loan maturities. He also mentioned how they managed to improve covenant compliance without significantly impacting FFO while continuing their efforts towards creating value for shareholders.
The Los Angeles-based REIT utilized the net proceeds from these transactions to repay outstanding amounts on its unsecured revolving credit facility.
In the image: Sunset Gower Studios owned by Hudson Pacific Properties.
