Madison International Realty acquires 50% stake in Paternoster Square Assets for c.£200 million to Partner with Oxford Properties
December 20, 2016
London December 14, 2016: Oxford Properties Group (“Oxford”), the global real estate arm of the Ontario Municipal Employees Retirement System (OMERS), has today announced that it has exchanged on the sale of 50% of its Paternoster Square office assets to leading real estate investment firm, Madison International Realty, for c£200 million ($251 million). The assets include King Edward Court, home of the London Stock Exchange and St Martin’s Court, CBRE’s head office in the City of London.
Oxford Properties will act as asset manager for the new joint venture, taking Oxford’s third party assets under management in Europe to C$1.8Bn. The deal is expected to complete by the end of the year.
Oxford acquired St Martin’s Court in October 2012 and King Edward Court in April 2013. As part of Oxford’s ownership of these two assets, Oxford also manages the Paternoster Square Estate, which it has actively worked to transform through the enhancement of the retail mix and provision of community events within the piazza.
This transaction will be one of the largest commercial real estate transactions in the London market this year, which demonstrates the sustained flow of international capital into London and the resilience of London as a global gateway city despite the outcome of the EU referendum in June.
Paul Brundage, Executive Vice President and Senior Managing Director Europe at Oxford Properties said: “We are delighted to establish a new joint venture with Madison International Realty, a partnership that we hope to develop further across Europe and North America. St Martin’s Court and King Edward Court represent cornerstone assets within Oxford’s London portfolio and Oxford remains committed both to these investments and the relationships we have built with the London Stock Exchange and CBRE over the years. This transaction is in line with Oxford’s strategy to co-invest with strategic partners and lever our European platform to deliver enhanced returns.”
Ronald M. Dickerman, President and Founder of Madison International Realty said: “We are thrilled to partner with Oxford, which we consider to be a world class owner, developer and manager of prime assets in our target markets. King Edward Court and St Martin’s Court are two extremely high quality, well-let assets in an iconic location directly next to St Pauls’ Cathedral in the City of London which make strong additions to our portfolio. We have purchased over £300 million worth of real estate in London since the EU referendum and have every confidence in both the city’s continued position as a leading global financial centre and its enduring appeal as a destination for international businesses.”
Oxford was advised by CBRE and Ashurst. Madison was advised by Fried, Frank, Harris, Shriver & Jacobson LLP.