Hudson Pacific Properties, Inc. (NYSE:HPP), a unique provider of end-to-end real estate solutions for tech and media tenants, announced today that it has divested through two separate transactions a land parcel in Silicon Valley and certain tranches of a loan secured by its Hollywood Media Portfolio for gross proceeds of $189.3 million before prorations and closing costs. Specifically, these sales included:
- Cloud 10, a 5.3-acre land parcel in North San Jose, for $43.5 million before prorations and closing costs.
- 100% of two tranches and 49% of a third tranche of debt associated with its Hollywood Media Portfolio, generating gross proceeds of $145.8 million, while retaining a 51% ownership of the third tranche with a notional value of $30.2 million.
The company used net proceeds to repay amounts outstanding on its unsecured revolving credit facility.
“Strong execution on these sales has further strengthened our balance sheet and positions us well to navigate future loan maturities,” stated Victor Coleman, Hudson Pacific’s Chairman and CEO. “In addition, we have successfully improved covenant compliance with minimal impact to FFO, as we continue to enhance our ability to create value for shareholders going forward.”
