Canadian pension fund OMERS a 50% share in London’s Watermark Place to Hamburg-based Union Investment for an undisclosed amount.

Canadian pension fund OMERS a 50% share in London’s Watermark Place to Hamburg-based Union Investment for an undisclosed amount.

OMERS acted through its international real estate arm, Oxford Properties. As part of the transaction, Oxford and Union have formed a 50-50 JV to hold the asset with Oxford acting as asset manager.

In parallel, the JV has refinanced the asset, raising a new 10-year £270 mln debt facility from Pricoa Mortgage Capital. Union Investment will hold its 50% interest for its open-ended real estate fund UniImmo: Europa.

Oxford’s first investment in the London market, Watermark Place is a 50,000 m2 Grade A office building situated on the River Thames in the City of London business district. Oxford initially acquired a 50% interest in the asset in 2007 as a development site, which was completed in 2009, and subsequently purchased the building outright in November 2010.

The building is the EMEA headquarters of Japanese investment bank Nomura.

The JV partners said they believe that the asset will provide an attractive income-led total return and is well positioned to take advantage of the continued strong growth fundamentals in the City of London market.

The deal allows Oxford to capitalise upon the substantial current investor demand for well-leased prime assets in core Central London locations and recycle capital into higher-returning development opportunities.

'This transaction demonstrates the success of our early development ventures in the London market and the progression of our local asset management platform. Our partnership with Union Investment reinforces an important and growing relationship – this is our second deal together in Europe in 2015, following Oxford’s acquisition of 92 Avenue de France in Paris,' said Paul Brundage, executive vice president and senior managing director, Oxford Properties Europe.

He added: 'The refinancing also illustrates the strength of our global platform, with Pricoa Mortgage Capital being an existing lender to our US business.'

Oxford Properties Group was advised by CBRE on the JV with Union Investment and by Eastdil Secured on the refinancing. DLA Piper advised Oxford on both transactions. Union Investment was advised by Savills and Nabarros. Pricoa Mortgage Capital was advised by Herbert Smith Freehills.