GIC and Rockwood Capital in venture to acquire and develop office portfolio in Playa Vista, Calif.
GIC, Singapore’s sovereign wealth fund, 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, Los Angeles, Calif.
“This investment reflects GIC’s long-term confidence in the West Los Angeles office market,” said Lee Kok Sun, CIO, GIC Real Estate. “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 United States.”
The portfolio assets are Water’s Edge, a high-quality 259,000-square-foot, two-building creative office campus in northwest Playa Vista, and Playa Jefferson, a 251,000-square-foot, five-building multi-tenant complex in central Playa Vista.
The venture has also commenced construction on the second phase of Water’s Edge, a 160,000-square-foot office building that will be known as WE3. Construction is expected to be completed in the second quarter 2020. Thereafter, Water’s Edge will feature approximately 450,000 square feet of class A office space in a supply-constrained market.
Los Angeles is the second-largest metro economy in the United States and a key center for media and entertainment content creation. Among U.S. gateway cities, Los Angeles features strong growth and attractive real estate fundamentals. Additionally, the Playa Vista submarket, as part of the Southern California technology hub often known as “Silicon Beach,” continues to attract many growing technology and creative tenants.
Peter Kaye, managing partner of Rockwood Capital, said, “Playa Vista is a dynamic submarket that continues to evolve. These investments consist of high-quality product in visible campus settings. We believe that world-class tenants will continue to migrate to these locations and that, over time, investments in such locations will outperform.”
