Boston Properties, CPP, GIC Announce Office Co-Investment Program

Developer Boston Properties Inc. (BXP), Canada Pension Plan Investment Board (CPP Investments) and GIC have announced the formation of a co-investment program for future acquisitions of office properties in the United States.

Through the program, the partners intend to selectively acquire and operate office properties in BXP’s core markets of Boston, Los Angeles, New York, San Francisco and Washington D.C., as well as Seattle. The partners have targeted an aggregate of $1 billion of equity to the program, with BXP and CPP Investments each allocating $250 million and GIC allocating $500 million. The partnership expects to employ leverage allowing for an initial investment capacity of approximately $2.0 billion.

“We are delighted to expand our relationship with CPP Investments and to begin a new relationship with GIC, two highly respected and experienced real estate investors,” said Owen Thomas, CEO at BXP. “This new co-investment program underscores the attractiveness of Class A office investment opportunities in our markets and BXP’s track record of creating long-term value at the property level.”