Douglas Emmett’s SaMo deal is latest in partnership with Qataris

Los Angeles /
Sep.September 28, 2016 09:30 AM

Santa Monica-based REIT Douglas Emmett’s recent purchase of a nine-story Santa Monica office building for $139 million represents the latest in the company’s growing relationship with the Qatar Investment Authority, the sovereign wealth fund which recently bought a stake in the company that owns New York’s Empire State Building.

The deal is one in a string of major transactions completed by QIA over the past year. Just last month, QIA said it had acquired a stake in the iconic Manhattan tower through a $622 million deal for a minority stake in its owner, publicly-traded Empire State Realty Trust. An affiliate of QIA now owns 9.9 percent of the REIT.

The fund has said it plans to invest $35 billion in North America over the next five years in a move towards diversifying its portfolio outside of Europe and recently opened an office in New York in order to source deals on the ground.

The Santa Monica property, at 233 Wilshire Boulevard, is owned by an existing consolidated joint venture with institutional investors including QIA, according to a release distributed by Douglas Emmett.  That joint venture, which also acquired 12100 Wilshire Boulevard in July, borrowed $56 million for the purchase, the company said.

As part of the deal, Douglas Emmett reduced its equity in the joint venture to 20 percent by selling a portion of its interest to another sovereign wealth fund investor, according to the release. The other sovereign wealth fund was not identified.

The Santa Monica transactions were separate from the QIA and Douglas Emmett joint venture that acquired four buildings, at 10960, 10940 and 10880 Wilshire Boulevard and 1100 Glendon Avenue in Westwood in February. Douglas Emmett currently holds a 30 percent capital interest in those properties, the company said.

QIA, created in 2005 to manage Qatar’s oil and natural gas profits, is private and  declines to disclose the extent of its holdings. — Katherine Clarke


Related Articles

arrow_forward_ios
Clockwise from top left: Harrison Street CEO Christopher Merrill, 2825 Santa Monica Boulevard, Stockdale Capital Partners' Steven Yari and Shawn Yari and 9090 Wilshire Boulevard (Harrison Street, Stockdale Capital Partners) 
Harrison Street buys Westside medical offices for $156M
Harrison Street buys Westside medical offices for $156M
Irvine's Donald Bren and Douglas Emmett's Jordan Kaplan with 1221 Ocean Avenue (Irvine Company, UCLA Anderson school, 1221 Ocean Avenue)
Bren’s Irvine Co. in record territory at $2.7M per unit for Santa Monica apartments
Bren’s Irvine Co. in record territory at $2.7M per unit for Santa Monica apartments
Jeff Bezos in front of the Spectrum Terrace at 17300 Laguna Canyon Road in Irvine (top) and the Water Garden at 1620 26th Street in Santa Monica (bottom) (Getty Images, Spectrum Terrace, Water Garden, iStock)
Amazon take 439K sf of office space for three SoCal ‘tech hubs’
Amazon take 439K sf of office space for three SoCal ‘tech hubs’
A rendering of 1807 Broadway in Santa Monica (Rios)
Developer aims for apartments with cultural space in Santa Monica
Developer aims for apartments with cultural space in Santa Monica
Eastside, Westside: Lender puts $76M behind Shekhter projects in Santa Monica, warehouse in Vernon
Eastside, Westside: Lender puts $76M behind Shekhter projects in Santa Monica, warehouse in Vernon
Eastside, Westside: Lender puts $76M behind Shekhter projects in Santa Monica, warehouse in Vernon
John Parkinson with 808 Woodacres Rd (Anthony Barcelo, BBC, iStock)
Seminal LA architect John Parkinson’s house hits market with room to grow
Seminal LA architect John Parkinson’s house hits market with room to grow
401 Ocean Avenue, Unit 5 in Santa Monica (Cindy Ambuehl/Compass)
Santa Monica condo fetches top price for year
Santa Monica condo fetches top price for year
Santa Monica estate with ties to “Godmother” listed for $22 million
Santa Monica estate with ties to “Godmother” listed for $22 million
Santa Monica estate with ties to “Godmother” listed for $22 million
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...