Hudson Pacific Properties Inc (HPP) and Farallon Capital Enter Into Lock-Up Agreement

Hudson Pacific Properties Inc (NYSE:HPP), with a market cap of $2.55 billion, is a full-service real-estate company with a focus on business properties in select growth markets. HPP most recent quarterly results, for the third quarter of 2014, showed that their Funds From Operations had increased to $20.8 million from $14.0 million during the same year-ago period. Some of their highlights during the quarter included the sale of their 112,300 square-foot Tierrasanta property in San Diego, California for $19.5 million, as well as the leasing of 40,558 square feet of their 901 Market Street property in San Francisco, California to Saks & Company for one of that brand’s Saks Fifth Avenue Off 5^th retail outlets. That store is scheduled to open later this year, in March.

Hudson Pacific Properties Inc (NYSE:HPP) has declared that the net proceeds from their latest public offering, which amount to approximately $385.6 million, will be used to fund their previously announced acquisition of the San Francisco Peninsula and Silicon Valley portfolios of Equity Office Properties. Should that deal fail to reach completion, the money will be used for other development activities and potential acquisitions.

Farallon has been the only hedge fund we track to take a major position in Hudson Pacific Properties Inc (NYSE:HPP) over the years, though a few other funds do have smaller stakes in the company. As of September 30, 2014, Ken Griffin’s Citadel Investment Group owned 1.29 million shares, Dmitry Balyasny’s Balyasny Asset Management owned 740,000 shares, and Israel Englander’s Millennium Management owned 311,826 shares.

Disclosure: None