GIC enters joint venture to buy Los Angeles office campuses

It bought Water’s Edge and Playa Jefferson, which are both in Playa Vista.

GIC 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.

According to an announcement, the portfolio assets are Water’s Edge, a high-quality 259,000 sqft two-building creative office campus in north-west Playa Vista, and Playa Jefferson, a 251,000 sqft five-building multi-tenant complex in central Playa Vista.

The venture also started the construction on the second phase of Water’s Edge – a 160,000 sqft 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 sqft of Class A office space in a supply-constrained market,” GIC added.

GIC noted that Los Angeles is the second-largest metro economy in the US and a key centre for media and entertainment content creation. “Amongst 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,” it added.