Hudson Pacific Properties Completes Public Offering Of Common Stock
News: On January 28 2014 US-based real estate company Hudson Pacific Properties announced that it had completed its public offering of 9,487,500 shares of common stock at a price of US$21.50 per share. The public offering included 1,237,500 shares of its common stock issued and sold in accordance with the exercise of the underwriters' option to buy additional shares in full. After deducting underwriting discounts, the net proceeds from the offering were about US$195.8mn. The company plans to use this to finance the recently announced takeover of Merrill Place, Seattle, as well as for development and redevelopment activities and general corporate purposes.
BMI View: Commercial real estate expansion is dependent on a healthy macroeconomic environment. Poor economic growth affects the real estate sector as it serves to dampen both property fundamentals and capital markets, putting downwards pressure on tenant retentions, rental growth, yields, development activity, financing and asset values.