A fund advised by JP Morgan Asset Management has invested €400 mln in Oxford Properties’ French portfolio to become a strategic investment partner in Paris.
Oxford Properties Group, the global real estate arm of Canadian pension fund the Ontario Municipal Employees Retirement System, has taken a 49.9% non-managing interest in 32 Rue Blanche, 92 Avenue de France and Paris Bastille.
Oxford said the sale gives it a strategic investment partner in Paris and releases capital to make further investments. The company plans to grow its Paris portfolio to €2.5 bn over time, from €1.3 bn at present.
Oxford Properties first invested in Paris in 2014 when it bought 32 Rue Blanche. Its portfolio comprises 737,000 sq ft (68,500 m2) of offices across the 9th, 11th and 13th arrondissements of Central Paris.
A fourth asset, Window, a 44,200 m2 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.
Paul Brundage, an executive vice president and senior managing director for Europe and the Asia Pacific at Oxford Properties said: '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.'
He added: '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.