US developer Tishman Speyer and Dutch institutional investor Bouwinvest Real Estate Investors have announced the establishment of a joint investment fund. Operating under the name Bouwinvest-Tishman Speyer SMA, the vehicle focuses on acquiring prime office properties across the United States. The joint venture aims to target both the country's established office hubs and high-growth regional markets.
The acquisition of an interest in the historic Chrysler Building in Manhattan served as the first transaction under this new mandate. Using capital from the vehicle, Tishman Speyer financed the acquisition of a 150-year ground lease for the world-famous skyscraper. The agreement also includes committed investments of 235 million dollars, which are to be deployed for a comprehensive refurbishment and modernisation of the Art Deco tower.
Strategic positioning in the US office sector
Robert Wagenaar, Head of North America Investments at Bouwinvest, outlined the rationale behind the commitment. He stated that the Chrysler Building was a fitting initial investment for the mandate and reflected the firm's international investment strategy. He noted that the company acts selectively and counter-cyclically, preferring to partner with specialised operators such as Tishman Speyer. Bouwinvest currently sees a compelling tactical opportunity in the US office market, particularly for investments with a clear locational focus and the potential for sustainable transformation of existing buildings.
Tishman Speyer also views the current market environment as promising. Nate Shanok, Senior Managing Director at the firm, stated that they see attractive opportunities to acquire well-located office properties in submarkets characterised by robust demand and limited new supply. Through targeted repositioning, the assets are to be adapted to the evolving requirements of modern occupiers.
Expansion of institutional cooperation
To date, the two partners have not disclosed how much equity has been allocated in total or how many assets the fund plans to acquire. The collaboration in the US office sector builds on an already existing partnership: Bouwinvest and Tishman Speyer recently launched the Korea Living Venture, a 400 million dollar fund focused on the acquisition, development and upgrading of multi-family residential buildings in the South Korean capital of Seoul.
