Finance  ·  Sales

Hudson Pacific Sells Studio Debt and Silicon Valley Land for $189M

reprints


Hudson Pacific Properties on Monday announced new balance sheet moves to bolster its financial standing.

The Los Angeles-based real estate investment trust said it raised a combined $189.3 million after it divested certain tranches of a loan secured by its Hollywood Media Portfolio of studios and soundstages, and also sold a land parcel in Silicon Valley. The funds were used to repay outstanding amounts on its unsecured revolving credit facility.

SEE ALSO: Watch Shop Avi & Co. Buys Former Playboy Club for $27M in Foreclosure Auction

The sales included 100 percent of two tranches and 49 percent of a third tranche of debt, generating gross proceeds of $145.8 million. HPP also sold Cloud 10, a 5.3-acre land parcel in North San Jose, for $43.5 million.

“Strong execution on these sales has further strengthened our balance sheet and positions us well to navigate future loan maturities,” Victor Coleman, HPP’s chairman and CEO, said in a statement. “In addition, we have successfully improved covenant compliance with minimal impact to [funds from operations], as we continue to enhance our ability to create value for shareholders going forward.”

HPP has had a rocky and busy year navigating through the tumultuous economic headwinds as well as the historic Hollywood strikes. Those strikes closed soundstages and ended up costing the studio landlord and developer an estimated $100 million in lost earnings. Hudson Pacific also sold two offices on L.A.’s Westside earlier this year in its efforts to shed lower-performing office assets from its portfolio. 

Gregory Cornfield can be reached at gcornfield@commercialobserver.com.