SINGAPORE / LOS ANGELES, CA (May 22, 2018) – 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, California.
The portfolio assets are Water’s Edge, a high-quality 259,000 ft2 two-building creative office campus in north-west Playa Vista, and Playa Jefferson, a 251,000 ft2 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 ft2 office building which will be known as WE3. Construction is expected to be completed in the second quarter of 2020. Thereafter, Water’s Edge will feature approximately 450,000 ft2 of Class A office space in a supply-constrained market.
Los Angeles is the second-largest metro economy in the US and a key centre for media and entertainment content creation. Among US gateway cities, Los Angeles features strong growth and attractive real estate fundamentals. Additionally, the Playa Vista sub-market, as part of the Southern California technology hub often known as ‘Silicon Beach’, continues to attract many growing technology and creative tenants.
Lee Kok Sun, Chief Investment Officer, GIC Real Estate, said, “This investment reflects GIC’s long-term confidence in the West Los Angeles office market. 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 U.S.”
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. We are very pleased to partner with GIC on these exciting projects.”