Hudson Pacific Raises $189 Million from Silicon Valley Land and Studio Debt Sales

Rhea-AI Summary

Hudson Pacific Properties, Inc. (NYSE: HPP) has divested a land parcel in Silicon Valley and certain tranches of a loan secured by its Hollywood Media Portfolio, generating gross proceeds of $189.3 million. The company used the net proceeds to repay amounts outstanding on its unsecured revolving credit facility. The Chairman and CEO, Victor Coleman, highlighted the strong execution on the sales, further strengthening the balance sheet and improving covenant compliance with minimal impact to FFO.

LOS ANGELES--(BUSINESS WIRE)--

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.”

About Hudson Pacific Properties

Hudson Pacific Properties (NYSE: HPP) is a real estate investment trust serving dynamic tech and media tenants in global epicenters for these synergistic, converging and secular growth industries. Hudson Pacific’s unique and high-barrier tech and media focus leverages a full-service, end-to-end value creation platform forged through deep strategic relationships and niche expertise across identifying, acquiring, transforming and developing properties into world-class amenitized, collaborative and sustainable office and studio space. For more information visit HudsonPacificProperties.com.

Forward-Looking Statements

This press release may contain forward-looking statements within the meaning of the federal securities laws. Forward-looking statements relate to expectations, beliefs, projections, future plans and strategies, anticipated events or trends and similar expressions concerning matters that are not historical facts. In some cases, you can identify forward-looking statements by the use of forward-looking terminology such as "may," "will," "should," "expects," "intends," "plans," "anticipates," "believes," "estimates," "predicts," or "potential" or the negative of these words and phrases or similar words or phrases that are predictions of or indicate future events, or trends and that do not relate solely to historical matters. Forward-looking statements involve known and unknown risks, uncertainties, assumptions and contingencies, many of which are beyond the company's control, which may cause actual results to differ significantly from those expressed in any forward-looking statement. All forward-looking statements reflect the company's good faith beliefs, assumptions and expectations, but they are not guarantees of future performance. Furthermore, the company disclaims any obligation to publicly update or revise any forward-looking statement to reflect changes in underlying assumptions or factors, of new information, data or methods, future events or other changes. For a further discussion of these and other factors that could cause the company's future results to differ materially from any forward-looking statements, see the section entitled "Risk Factors" in the company's Annual Report on Form 10-K filed with the Securities and Exchange Commission, or SEC, and other risks described in documents subsequently filed by the company from time to time with the SEC.

View source version on businesswire.com: https://www.businesswire.com/news/home/20231204264825/en/

Investor Contact

Laura Campbell

Executive Vice President, Investor Relations & Marketing

(310) 622-1702

lcampbell@hudsonppi.com

Media Contact

Laura Murray

Senior Director, Communications

(310) 622-1781

lmurray@hudsonppi.com

Source: Hudson Pacific Properties, Inc.

FAQ

What did Hudson Pacific Properties, Inc. (NYSE: HPP) announce?

Hudson Pacific Properties, Inc. (NYSE: HPP) announced the divestment of a land parcel in Silicon Valley and certain tranches of a loan secured by its Hollywood Media Portfolio, generating gross proceeds of $189.3 million.

How much were the gross proceeds from the divestment?

The gross proceeds from the divestment were $189.3 million.

What did the company use the net proceeds for?

The company used the net proceeds to repay amounts outstanding on its unsecured revolving credit facility.

Who is the Chairman and CEO of Hudson Pacific Properties, Inc. (NYSE: HPP)?

The Chairman and CEO of Hudson Pacific Properties, Inc. (NYSE: HPP) is Victor Coleman.

What was the impact of the sales on the company's balance sheet and covenant compliance?

The sales further strengthened the balance sheet and improved covenant compliance with minimal impact to FFO, according to Victor Coleman, the Chairman and CEO.