Canada Pension Plan Investment Board (CPPIB) has agreed to acquire a 50% equity stake in Milton Park, a UK business and technology campus, from Hermes Investment Management, for £200 mln (€227 mln).
Located in the Thames Valley region, Milton Park accommodates global science and technology companies as well as emerging businesses, including spin-offs from the nearby University of Oxford.
At 101 hectares, Milton Park is one of Europe's largest integrated business, science and technology parks and home to over 250 organisations employing over 9,000 people.
Chris Taylor, head of private markets at Hermes, commented: 'The deal marks another significant milestone in our growing relationship with CPPIB, which has already proved highly successful through our JV within central London and our collaboration at Wellington Place in Leeds and Paradise, Birmingham.’
Taylor added that recycling capital through sales such as this enabled Hermes to diversify its global portfolio and invest further in existing and new strategic holdings. Hermes had over €8 bn of real estate under management in Europe at end-2016. The firm’s total portfolio spread across a range of strategies comes to €35 bn.
MEPC, a developer and asset manager will remain as asset manager and developer under the joint ownership. MEPC is currently overseeing the development of Park Drive East, one of the largest speculative developments in Oxfordshire, to accommodate ongoing demand for office and laboratory space in the region.
'This transaction provides CPPIB with a further opportunity to grow our existing relationship with Hermes, one of our key strategic partners,' said Andrea Orlandi, CPPIB's managing director and head of real estate investments in Europe.
'MEPC, our asset and development manager on Wellington Place has a strong track record in developing and transforming major real estate projects. We see significant future growth potential at Milton Park as it continues to build on its attractiveness to the life-science sector - a major pillar of the thriving Oxford economy.'
CPPIB manages the investment portfolio for the Canada Pension Plan, which totalled CA$317 bn (€218 bn) at end-March this year.
