Douglas Emmett And QIA Acquire Westwood Office Portfolio

Mar 01, 2016, 16:43 ET from Douglas Emmett, Inc.

SANTA MONICA, Calif., March 1, 2016 /PRNewswire/ -- Douglas Emmett, Inc. (NYSE: DEI), a real estate investment trust (REIT), today announced the acquisition of a 1,725,000 square foot office portfolio in a joint venture with Qatar Investment Authority (QIA). The portfolio consists of four Class "A" office buildings located in Westwood, a premier West Los Angeles submarket. The purchase price was approximately $1.34 billion, or $777 per square foot.

Douglas Emmett plans to retain 20% to 30% of the equity in the joint venture, with the remaining interests being held by institutional partners. The joint venture has obtained a non-recourse $580 million interest-only loan with a seven-year term. The interest rate is floating at Libor plus 1.40%, which has been fixed at 2.37% per annum for five years through an interest rate swap. In accordance with generally accepted accounting principles, this joint venture will be consolidated in the financial statements of Douglas Emmett, Inc.

With the addition of this portfolio, Douglas Emmett controls 74% of the Westwood Wilshire office corridor. Douglas Emmett's total commercial portfolio now consists of 66 office properties totaling approximately 17.2 million rentable square feet. Douglas Emmett also owns ten premier apartment communities in Los Angeles and Honolulu with a total of 3,336 units.

For QIA, this joint venture represents another step in its plans to significantly expand its US investment portfolio, and follows other large investments in real estate, such as in New York City last year. In 2015, QIA announced plans to invest $35 billion in North America over five years.

 

About Douglas Emmett, Inc. Douglas Emmett, Inc. (DEI) is a fully integrated, self-administered and self-managed real estate investment trust (REIT), and one of the largest owners and operators of high-quality office and multifamily properties located in the premier coastal submarkets of Los Angeles and Honolulu. Douglas Emmett focuses on owning and acquiring a substantial share of top-tier office properties and premier multifamily communities in neighborhoods that possess significant supply constraints, high-end executive housing and key lifestyle amenities. For more information about Douglas Emmett, please visit our website at www.douglasemmett.com.

About Qatar Investment Authority (QIA) Qatar Investment Authority was founded by the State of Qatar in 2005 following the vision of HH Sheikh Hamad bin Khalifa Al Thani to strengthen the country's economy by diversifying into new asset classes. Building on the heritage of Qatar investments dating back more than three decades, its growing portfolio of long-term investments help complement the state's huge wealth in natural resources.

Headquartered in Doha, and now with an office in New York, QIA is structured to operate at the very highest levels of global investing. As a world class investor, QIA adheres to the strictest financial and commercial disciplines. It has a strong track record of investing in different asset classes, including listed securities, property, alternative assets and private equity in all the major capital markets as well as the newer emerging markets.

For more information, please visit our website at www.qia.qa or contact:

Media: David Henderson, Finsbury UK: +44 20 7251 3801 Mallory Weinberg, Finsbury US: +1 646 805 2043

Safe Harbor Statement Except for the historical facts, the statements in this press release regarding Douglas Emmett's business activities are forward-looking statements based on the beliefs of, assumptions made by, and information currently available to us about known and unknown risks, trends, uncertainties and factors that are beyond our control or ability to predict. Although we believe that our assumptions are reasonable, they are not guarantees of future performance and some will inevitably prove to be incorrect. As a result, our actual future results can be expected to differ from our expectations, and those differences may be material.  Accordingly, investors should use caution in relying on forward-looking statements to anticipate future results or trends.   For a discussion of some of the risks and uncertainties that could cause actual results to differ from those contained in the forward-looking statements, see "Risk Factors" in our Annual Report on Form 10-K filed with the U.S. Securities and Exchange Commission.

Stuart McElhinney, Vice President – Investor Relations 310.255.7751 smcelhinney@douglasemmett.com

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SOURCE Douglas Emmett, Inc.



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