Oxford Properties buys London office for £110m

The real estate arm of OMERS has purchased the central business district office of CBRE in a deal reflecting a yield of 5.5%.

Oxford Properties, the real estate arm of Ontario Municipal Employees Retirement System (OMERS), the C$55 billion (€42.76 billion; $55.4 billion) pension plan, has completed the acquisition of St Martin’s Court, an office in the City of London.

Oxford has paid seller Legal & General Property £110 million (€136 million; $176.3 million) for the property, situated just off the popular city haunt Paternoster Square and near the iconic St Paul’s Cathedral, in a deal reflecting a yield if 5.5 percent.

The 127,865 square foot property is leased to the world’s largest property services firm, CBRE, until 2023. Other tenants include retailers Itsu, TM Lewin and Wasabi.

Paul Brundage, executive vice president and senior managing director Oxford Properties Europe, commented: “St Martin’s Court is a great acquisition for Oxford; a prime, City property that represents a strong strategic fit with our existing commercial investment and development portfolio.”

Michael Barrie, director of fund management, at Legal & General Property said: “This is a high profile, well-let, prime City asset that we have held since 2003. The sale allows us to recycle capital into other market opportunities and to capitalise on LGP’s strong asset management and development capabilities.”