Oxford Properties, the real estate arm of Canadian pension fund Omers, has carried out its second office acquisition in Continental Europe in the space of six months with the purchase of the RFF office building in Paris.
Oxford Properties, the real estate arm of Canadian pension fund Omers, has carried out its second office acquisition in Continental Europe in the space of six months with the purchase of the RFF office building in Paris.
Oxford entered Continental Europe in September last year with the purchase of a 22,000 m2 building at 32 Rue Blanche in Paris from The Carlyle Group for €263 mln.
The Canadian investor said at the time that it planned to grow its assets under management in Paris to over €1 bn over the next three to five years.
In the latest purchase, Oxford Properties has bought the nine-storey office scheme delivered in 2003 by Sorif from Union Investment's Unimmo: Deutschland fund and GLL Real Estate. Located at Avenue de France, the asset is fully let to state railway company Réseau Ferré de France (RFF) and offers 21,800 m2 of usable area and 122 underground parking spaces in Paris Rive Gauche.
Financial details were not disclosed. However, the asset was last valued at €183 mln in Unimmo: Deutschland's annual report at end-March 2014 and is believed to have been sold for €200 mln.
Oxford focuses on assets where it can drive value through active asset management and where it believes that current values do not reflect future market improvements. The company has already built up a €3 bn portfolio in London and is currently looking to build up a similar platform in Paris.
In the UK the investor owns a number of high-quality assets including a 50% stake in London's MidCity Place, the Royal Exchange retail arcade, the London stock Exchange site and a half-share in the commercial element of St James's Market scheme.
