Thursday 14 December 2017

Facebook expands Menlo Park base with purchase of 21-building campus

Facebook boss Mark Zuckerberg
Facebook boss Mark Zuckerberg

Brian Louis

Facebook bought a 21-building campus in Menlo Park, California, as the social-network company expands in its headquarters city.

Prologis was the seller of the 56-acre (23-hectare) industrial park at Willow Road between Highway 101 and the Dumbarton Bridge, the San Francisco-based real estate investment trust said in a statement. Terms weren't disclosed.

Prologis, the largest industrial REIT, has owned and managed the Menlo Science & Technology Park since 1998. Property values in Silicon Valley and nearby San Francisco are climbing as technology companies in the region grow.

"Land constraints and increased urbanization pressures in markets such as Silicon Valley support the monetization of select in-fill assets," said Prologis chief investment officer Michael Curless.

The company will continue to manage the property, according to the statement.

For Facebook, the purchase "is an investment in our future and the future of Menlo Park," said a company spokeswoman.

"Being a good neighbor is extremely important to us, and we look forward to continuing our dialogue with city and community leaders on local priorities in the months and years to come," the spokesman added.

While Facebook expands its property portfolio in the US, its European Headquarters in Dublin is on the market with an asking price of more than €150m. The property at four and five Grand Canal Square is being sold off by Chartered Land.

Hilton buys four hotels for €1.3bn

Hilton Worldwide, the largest operator of lodging properties, agreed to buy San Francisco's Parc 55 hotel and four other hotels for $1.76bn (€1.3bn).

Hilton will purchase the properties with some of the proceeds from its $1.95bn sale of the Waldorf Astoria hotel in New York, according to a statement. That sale, to China's Anbang Insurance Group, has now closed, Hilton said.

Hilton said in October it agreed to sell the Waldorf Astoria on Park Avenue to Anbang.

The other four hotels are in Florida, with two in Orlando and two in Key West. All of the Florida properties already operate under the Hilton Brand and they include a total of 1,960 rooms, according to the statement.

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