Hudson Pacific Properties and Blackstone to Acquire and Renovate Bentall Centre Complex in Vancouver, Canada

Hudson Pacific Properties, Inc. (NYSE: HPP) today announced it
will form a joint venture with an affiliate of Blackstone Property
Partners (BPP) to acquire and renovate the 1.45 million-square-foot
Bentall Centre office and retail complex in Vancouver, Canada. Hudson
Pacific will own 20% of the joint venture and serve as the Operating
Partner responsible for day-to-day operations and development.
Blackstone will own 80% and serve as the Managing Partner. The
transaction is expected to close in the second quarter of this year.

Victor Coleman, Chairman and CEO of Hudson Pacific, said: “We have
always viewed Vancouver, with its proximity to Seattle, growing tech and
media industries, high quality of life and favorable immigration
policies as a natural expansion market for our office and studio
portfolios. Bentall Centre is one of the city’s preeminent office and
retail properties and a landmark of Downtown Vancouver. The acquisition
will provide us with immediate scale in the city’s Financial Core, as
well as the opportunity to create substantial value through Hudson
Pacific’s tailored repositioning strategy, and the eventual development
of additional premier office space. We are thrilled to once again
partner with Blackstone as we launch this exciting next phase of our
company’s growth in a fantastic new market.”

Nadeem Meghji, Head of Real Estate Americas at Blackstone, said: “We are
excited about the opportunity to enter the Vancouver office market with
the acquisition of one of the city’s premier office complexes. This
transaction represents a continuation of our global strategy of
acquiring high-quality, well-located office buildings in high-growth,
innovation cities around the world. We are making this acquisition
through BPP, our Core+ strategy, which is a permanent capital vehicle,
and plan to own and invest in this property for the long term. We are
also excited to again work with Hudson Pacific and its top-tier team.”

The joint venture for Bentall Centre between Hudson Pacific and
Blackstone represents the continuation of a long-standing relationship
between the two firms. In total, the parties have completed four
transactions in recent years, with the largest being Hudson Pacific’s
$3.5 billion purchase of the former-Equity Office Properties San
Francisco Peninsula and Silicon Valley office portfolio in 2015.

Bentall Centre contains four Class A office towers (Bentall I-IV)
totaling 1.3 million square feet, as well as 140,000 square feet of
amenity-oriented, at-grade and concourse-level retail space in the heart
of Vancouver’s Downtown Financial Core. The office space is 97% leased,
with current major tenants including Bank of Montreal, Deloitte
Management Services, WeWork, CIBC World Markets, and Absolute Software.
Located on nearly five acres at the intersection of Burrard and Dunsmuir
Streets, Bentall Centre affords excellent connectivity to Vancouver’s
major arterial thoroughfares, and direct access through the retail
promenade to the Burrard SkyTrain Station, with over 44,000 passengers
entering and exiting each day.

In addition to fully renovating the retail promenade, the joint venture
plans to substantially upgrade the indoor and outdoor common areas at
Bentall I-IV. Improvements will include signage and wayfinding;
furniture, finishes and fixtures; and landscaping. The purchase also
affords the ability to build by-right another office tower, one of the
few remaining large-scale office development opportunities in
Vancouver’s Downtown Financial Core.

All four existing office towers are BOMA Canada Level 2 certified, and
Bentall I, II, and III are LEED Gold certified, while Bentall IV is
LEED-EBOM Platinum.

About Hudson Pacific Properties

Hudson Pacific Properties is a real estate investment trust that owns
and operates more than 17 million square feet of office and studio
properties. Focused on premier West Coast epicenters of innovation,
media and technology, its anchor tenants include Fortune 500 and leading
growth companies such as Netflix, Google, Square, Uber, NFL Enterprises
and more. Hudson Pacific is publicly traded on the NYSE under the symbol
HPP, and listed as a component of the Russell 2000® and the Russell
3000® indices. 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/20190327005205/en/