Oxford Properties sells 50 per cent stake in Paris portfolio, and brings in strategic investment partner
Oxford Properties, the global real estate arm of the OMERS defined benefit pension plan, has sold a 49.9 per cent stake in its French portfolio to a fund advised by J P Morgan Asset Management for approximately EUR800 million.
The sale of a non-managing interest in 32 Rue Blanche, 92 Avenue de France and Paris Bastille gives Oxford Properties a strategic investment partner in Paris and releases capital to make further investments.
Oxford Properties made its first investment in Paris in 2014 when it acquired 32 Rue Blanche. Today, its portfolio comprises 68,500 sq m of office space across the 9th, 11th and 13th arrondissements of Central Paris.
A fourth asset, Window, a 44,200 sq m office building located in La Défense acquired in July 2017 and expected to complete by October 2018, will remain entirely owned and managed by Oxford Properties with the assistance of Hines France.
Oxford Properties currently manages EUR1.3 billion of assets in Paris (including Window) and has the intention to grow its Paris invested capital to EUR2.5 billion over time.
Paul Brundage, Executive Vice President and Senior Managing Director, Europe and Asia Pacific at Oxford Properties, says: “Our portfolio in Paris is performing extremely well thanks in part to our active asset management with Hines France that includes the recent 12-year lease on 92 Avenue de France to publishing company Editis.
“Part of our long-term strategy in Paris was to find a strategic investment partner to continue to grow our portfolio and this deal achieves that. Partnership is an important part of Oxford’s global strategy and we are delighted to welcome on board a like-minded partner and look forward to working alongside them. We continue to explore the potential of establishing an operating platform in Paris.”
Oxford Properties was advised by CBRE, Lacourte, Bredin Prat and Lasaygues on property matters. Ashurst London and Paris advised on the joint venture documentation.