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Hudson Pacific Trades Land, Debt Tranches for $189M
Hudson Pacific Properties said Monday that it divested, in two separate transactions, a land parcel in Silicon Valley and certain tranches of a loan secured by its Hollywood Media Portfolio for gross proceeds of $189.3 million. The buyers were not disclosed.
Specifically, these sales included the following:
- Cloud 10, a 5.3-acre land parcel in North San Jose, for $43.5 million before prorations and closing costs.
- 100% of two tranches and 49% of a third tranche of debt associated with Hudson Pacific’s Hollywood Media Portfolio, generating gross proceeds of $145.8 million, while retaining a 51% ownership of the third tranche with a notional value of $30.2 million.
“Strong execution on these sales has further strengthened our balance sheet and positions us well to navigate future loan maturities,” said Victor Coleman, Hudson Pacific’s chairman and CEO. “In addition, we have successfully improved covenant compliance with minimal impact to FFO, as we continue to enhance our ability to create value for shareholders going forward.”
The Los Angeles-based REIT used net proceeds to repay amounts outstanding on its unsecured revolving credit facility.
Pictured: Hudson Pacific’s Sunset Gower Studios.
- ◦Sale/Acquisition
