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OMERS forms £415m JV with Temasek

The pension plan’s real estate arm bought London’s Blue Fin building, continuing a push to build up its European real estate presence.

Oxford Properties has partnered with Singaporean sovereign wealth fund Temasek to purchase London’s Blue Fin building from media giant Time Inc., in a £415 million (€576.6 million, $637.7 million) joint venture announced Friday. Blue Fin is Oxford’s first asset in London’s South Bank district.

Oxford, the real estate arm of the Ontario Municipal Employees Retirement System (OMERS), will manage the building. Time, a New York-based publisher, will continue to occupy more than half of the 497,021 square foot building, which is 100 percent leased. The deal is expected to close by the end of the fourth quarter, according to a statement from the companies.

“This transaction reinforces Oxford’s belief that specific emerging ‘live-work-play’ destinations will outperform over time as a result of infrastructure improvements and shifting occupier dynamics,” said Paul Brundage, Oxford’s vice president and senior managing director, in a statement Friday.

Oxford's investment is part of a wider push by the C$37 billion (€24.5 billion; $28 billion) platform to have a C$13 billion real estate business in Europe by 2020. The firm currently has over C$7 billion in assets under management in London and Paris.

The firms also jointly own London’s MidCity Place, a 353,000 square foot office building. Oxford bought its 50 percent share in 2011 for £142 million from Boston-based Beacon Capital Partners, while Temasek bought the other 50 percent stake from Beacon for £175 million last year.