Douglas Emmett acquires roughly 17% of existing unconsolidated real estate fund
Douglas Emmett announced that it acquired approximately 17% of the equity in one of its existing unconsolidated real estate funds in exchange for approximately $95M in cash and Operating Partnership Units. The acquisition brought Douglas Emmett's total ownership of that fund to approximately 89%. Douglas Emmett and one remaining institutional investor in the fund agreed to extend the fund term to 2049. The fund owns six Class A office properties totaling approximately 1.5 million square feet in the prime Los Angeles submarkets of Beverly Hills, Santa Monica, Sherman Oaks/Encino and Warner Center. The fund also owns an interest in another Douglas Emmett unconsolidated real estate fund which owns two additional Class A office properties totaling 386,000 square feet in Beverly Hills and Brentwood. Douglas Emmett expects that the fund will be treated as a consolidated entity under generally accepted accounting principles following the acquisition, and that the transition to a consolidated entity will be treated as a purchase of the underlying assets and liabilities of the fund.