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HCP Selling Google-Occupied Silicon Valley Campus for $1B
Irvine, CA-based HCP is under contract to divest Shoreline Technology Center in Mountain View, CA for $1 billion. The disposition of the roughly 800,000-square-foot asset is expected to generate a gain on sale of approximately $700 million upon closing in Q4 2018.
The 12-building campus is located along Stierlin Ct., and is 92% occupied by Google. The buyer was undisclosed.
HCP’s Peter Scott says, “This transaction highlights our ability to unlock meaningful shareholder value and generate attractively-priced capital, which we will use to deliver and further strengthen our balance sheet as well as fund future accretive growth.”
The REIT intends to use the proceeds to initially repay approximately $1 billion of debt at an average interest rate of approximately 3.5%. It plans to opportunistically redeploy a portion of capital into future acquisitions and to fund development and redevelopment activity, while maintaining a target net debt to adjusted EBITDA ratio in the high five times range.
For comments, questions or concerns, please contact Dennis Kaiser
- ◦Sale/Acquisition


