The Canada Pension Plan Investment Board has formed a joint venture with Boston Properties Inc. to develop Platform 16, a 1.1-million-square-foot Class A urban office campus in downtown San Jose, California.
In November 2018, Boston Properties entered a 65-year ground lease for Platform 16. As part of the lease, it secured the right to purchase all underlying land during a 12-month period starting Feb. 1, 2020 for about U.S.$134.8 million.
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The CPPIB will have a 45 per cent ownership interest in the venture. Boston Properties will retain the remaining 55 per cent stake and provide customary development, property management and leasing services. The agreement is the second joint venture between the CPPIB and Boston Properties following the Santa Monica Business Park campus in 2018. The partnership will support the development of a planned three-building campus.
“Partnering with Boston Properties on the Platform 16 development is a great example of our real estate strategy in the United States,” said Hilary Spann, managing director and head of real estate investments, Americas at the CPPIB, in a press release. “We are very pleased to further our relationship with a best-in-class owner and operator and we look forward to expanding our office portfolio in the dynamic Bay Are.”
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