TIER REIT Inc has sold 50 percent of its stake in the Third + Shoal development to Invesco Real Estate. No financial terms were disclosed. Based in Austin, Texas, Third + Shoal is an office tower currently under construction.
Correction: An earlier version of this news item and headline misstated certain details of the transaction. The report and headline have since been corrected.
DALLAS–(BUSINESS WIRE)–TIER REIT, Inc. (NYSE: TIER), a Dallas-based real estate investment trust, today announced the sale of 50% of the Company’s interest in its Third + Shoal development to Invesco Real Estate, a global real estate investment manager, as a strategic financial partner. Third + Shoal is an approximately 345,000 square foot office tower currently under construction in the heart of Austin’s “New Downtown,” with an expected delivery in the third quarter of 2018. The Company’s joint venture with Invesco Real Estate closed on March 31, 2017.
“We are uniquely positioned and moving forward with this Class AA project, at a time when competitive development is especially limited, tenant demand is robust, and Austin CBD vacancy is at historic lows,” stated Scott Fordham, President and Chief Executive Officer of TIER REIT. “Our strategic partnership with Invesco Real Estate highlights the attraction of institutional capital to the vibrant Austin office market,” continued Mr. Fordham, “and it allows the Company to pursue potential near-term opportunities to create additional value through our build-to-core development program in the highly sought-after submarkets of The Domain in Austin and Legacy Town Center in Dallas.”
About TIER REIT, Inc.
TIER REIT, Inc. is a self-managed, Dallas-based real estate investment trust focused on delivering outsized stockholder return through stock price appreciation and dividend growth while offering unparalleled tenant service. TIER REIT’s investment strategy is to acquire, develop and operate a portfolio of best-in-class office properties in select U.S. markets that consistently lead the nation in both population and office-using employment growth. Within these markets, we target TIER1 submarkets, which are primarily urban and amenity-rich locations. For additional information regarding TIER REIT, please visit www.tierreit.com or call 972.483.2400. For additional information regarding Third + Shoal, please visit www.thirdandshoal.com.
Invesco is an independent investment management firm dedicated to delivering an investment experience that helps people get more out of life. NYSE: IVZ; www.invesco.com
About Invesco Real Estate
Invesco Real Estate is a global leader in the real estate investment management business with $68 billion in real estate assets under management, 447 employees and 21 regional offices across the U.S., Europe and Asia. The firm was established in 1983 and has been actively investing in core, value-add and opportunistic real estate strategies since 1992. Invesco Real Estate is a business name of Invesco Advisers, Inc. which is an indirect, wholly owned subsidiary of Invesco Ltd., (NYSE: IVZ), one of the largest investment management firms in the world with $813 billion in assets under management and on-the-ground presence in 29 cities worldwide. Information as of December 31, 2016.