GIC in joint venture to acquire assets in California tech hub

The joint venture has begun construction on the second phase of Water's Edge - a 160,000 sq ft office building to be known as WE3. Construction is expected to be finished in the second quarter of 2020.
The joint venture has begun construction on the second phase of Water's Edge - a 160,000 sq ft office building to be known as WE3. Construction is expected to be finished in the second quarter of 2020.PHOTO: GIC

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 said yesterday.

The portfolio assets are Water's Edge, a 259,000 sq ft, two-building creative office campus; and Playa Jefferson, a 251,000 sq ft, five-building multi-tenant complex.

The venture has also begun construction on the second phase of Water's Edge - a 160,000 sq ft office building to be known as WE3. Construction is expected to be finished in the second quarter of 2020.

Thereafter, Water's Edge will feature about 450,000 sq ft of Class A office space "in a supply-constrained market", said GIC.

The fund said Los Angeles is the second-largest metropolitan economy in the United States and a key centre for media and entertainment content creation.

Playa Vista, which is part of the Southern California technology hub dubbed Silicon Beach, continues to attract many growing technology and creative tenants, said GIC.

Mr 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 that bought Water's Edge for US$190 million (S$254 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.

A version of this article appeared in the print edition of The Straits Times on May 23, 2018, with the headline 'GIC in joint venture to acquire assets in California tech hub'. Print Edition | Subscribe