The Qatar Investment Authority (QIA) has acquired a $1.34bn building in Los Angeles, in a joint venture with local partners Douglas Emmett.

The four office buildings cover 1,725,000 square feet, meaning the investors paid $777 a square foot.

Douglas Emmett is to retain 20 per cent to 30 per cent of the equity in the joint venture, with the remaining interests held by institutional partners.

The joint venture secured a $580m non-recourse interest-only loan with a seven-year term. The interest rate is floating at London interbank rate (Libor) plus 1.40 per cent, fixed at 2.37 per cent a year for five years through an interest rate swap.

The sovereign wealth fund announced in late 2015 that it planned to invest $35bn in the US to diversify its geographical footprint.

It then acquired a 44 per cent stake in the $8.6bn Manhattan West mixed-use development project in New York.

The QIA has assets of $256bn, according to a Sovereign Wealth Fund Institute estimate.

It is also making a $6.4bn bid for Australian transport and logistics company Asciano, according to Reuters.