GIC invests in US$1.05b Washington DC office portfolio, including Pentagon Centre

The Pentagon Centre.
The Pentagon Centre.PHOTO: GIC
The Terrell Place.
The Terrell Place.PHOTO: GIC
The Lafayette Centre.
The Lafayette Centre.PHOTO: GIC

SINGAPORE - GIC has formed joint ventures with a group of investors to acquire over 2.1 million square feet of office assets in the Washington DC metropolitan area, for more than US$1.05 billion (S$1.49 billion) in aggregate asset value.

The Singapore sovereign wealth fund said it is teaming up with affiliates of Beacon Capital Partners, a real-estate developer, owner and manager of office properties in major US markets.

One of the joint ventures includes the acquisition of Pentagon Centre, a 912,000 sqft complex of two buildings fully-leased for the long term to the US General Services Administration in Arlington and adjacent to the Pentagon and Reagan National Airport.

It also includes the Lafayette Centre, a 789,000 sqft complex of three multi-tenant buildings in the central business district.

An Beacon affiliate will continue to manage both Lafayette Centre and Pentagon Centre.

GIC has also invested alongside an existing Beacon-sponsored fund in Terrell Place, a 426,000 sqft complex of three interconnected buildings located in Washington DC's East End sub-market.

The amount of GIC's investments in its latest acquisitions was not disclosed.

In a joint statement on Thursday (Feb 23), Adam Gallistel, GIC's regional head of Americas, said, "These acquisitions will strengthen our portfolio of high-quality office assets in the US and enable us to invest in scale in the Washington DC market, one of the leading gateway cities of the US. We believe in the long-term strength of the DC metro area.

"We look forward to partnering with Beacon Capital Partners, a top owner and manager in the region and across the US office sector."

GIC's latest deal follows its tie-up last month with the Paramount Group to acquire 60 Wall Street, a 47-storey, 1.6 million sqft office tower that is currently Deutsche Bank's US headquarters, for US$1.04 billion. GIC took a 95 per cent stake in that joint venture.