Hermes Real Estate Investment Management has formed a 50-50 joint venture with Canadian pension giant CPPIB to acquire eight Central London office assets.
Hermes Real Estate Investment Management has formed a 50-50 joint venture with Canadian pension giant CPPIB to acquire eight Central London office assets.
The offices come from the portfolio of Hermes' client, the BT Pension Scheme.
Canada Pension Plan Investment Board manage CA$183 bn (€135 bn) in assets on behalf of 18 million Canadians.
CPPIB will invest £174 mln (€202 mln) to acquire a 50% interest in this core-plus/value-add portfolio, with the assets primarily located in London’s West End.
The portfolio comprises 51,000 m2 of offices, retail and ancillary accommodation. The properties are 100 Regent Street, 100 New Oxford Street, 40 Eastbourne Terrace, 50 Eastbourne Terrace, 242 Marylebone Road, Cheapside House, 20/24 Broadwick Street and 69 Carter Lane.
Hermes, which is acting on behalf of the BT pension fund, said in a statement that the partners plan to double the size of the partnership by increasing its exposure to similar types of core-plus/value-add assets.
'This acquisition is in line with our strategy to capitalise on attractive opportunities in the London office market and invest alongside well-aligned partners,' said Graeme Eadie, senior vice-president and head of Real Estate Investments for CPPIB. 'We see an excellent opportunity to increase the seed portfolio’s value and to grow the venture by acquiring more value-add product in Central London.'
'Our ability to source opportunities off-market and act decisively together with a conviction to understand how occupiers assess real estate provides a compelling case for investing in this platform. We firmly believe Central London will continue to deliver attractive opportunities,' added Chris Taylor, CEO of Hermes Real Estate Investment Management.
