July 14 (Reuters) - Boston Properties (BXP.N) said it has established a partnership with a potential spending power of up to $2 billion with Canada Pension Plan Investment Board and Singapore's sovereign wealth fund GIC to acquire office properties in the United States.
The partners will aim to contribute a total of $1 billion of equity to the partnership and plan on borrowing another billion, the real estate investment trust said on Wednesday.
The deal comes as rental prices in the United states remain weak and vacancy rates persist, factors that are weighing on the value of office buildings and hindering deals. read more
"This new co-investment program underscores the attractiveness of Class A office investment opportunities in our markets," said Owen Thomas, chief executive officer of Boston Properties.
Boston Properties and CPP Investments will each allocate $250 million to the program, while GIC will contribute $500 million, the REIT said.
The companies will acquire and operate office properties in Boston's primary markets which include Los Angeles, New York and San Francisco, the REIT said.
Hodes Weill & Associates acted as the exclusive advisor to Boston Properties.
Our Standards: The Thomson Reuters Trust Principles.