Brookfield Office Properties Inc. recently sold an office tower at 1400 Smith Street in Houston for approximately $340.0 million to Chevron Corp ( ">CVX ) . Additionally, Brookfield also renewed a seven-year lease for a 311,000 square feet property at the Continental Center I.
In 2006, Brookfield had acquired this 1.3 million square feet office tower and leased it to Chevron. After the completion of this asset sale, Chevron, which was once the tenant now becomes the owner of the 50- storied tower.
Based in San Ramon, California, Chevron through its subsidiaries, engages in petroleum, chemicals, mining, power generation, and energy operations worldwide. Chevron already boasts a presence in Houston and with this deal has further strengthened its presence in Houston.
While on the other hand, Brookfield intends to divest assets and recycle its capital into more matured assets and create lucrative opportunities. Moreover, the company has created significant value with the lease extension with Chevron. So the transaction is a win-win situation for both the companies.
Based in New York, Brookfield is a publicly owned real estate investment firm. The company owns, develops and manages premier office properties in the United States, Canada and Australia. It also provides ancillary real estate service businesses, such as tenant service and amenities. The company invests in high growth and high barrier to entry markets with its main focus on the creation and sustainability of growing streams of cash flow.
Its portfolio consists of 109 properties spanning 78 million square feet in the downtown cores of New York, Washington, D.C., Houston, Los Angeles, Toronto, Calgary, Ottawa, Sydney, Melbourne and Perth, thereby making it the global leader in the ownership and management of office assets.