OMERS-Temasek JV buys Time's London HQ for €578m

Canadian pension fund OMERS and Singaporean sovereign wealth fund Temasek have acquired the London headquarters of media group Time Inc for £415 mln (€578 mln).

The joint venture acquisition of the 46,000 m2 Blue Fin Building in London's ant South Bank district is expected to close by the end of the fourth quarter of 2015.

The building is 100% leased, and Time Inc UK will remain the majority occupier as it is leasing back almost 15,000 m2. Time has occupied the site since 2007 when the building was originally developed. The remaining space is let to 12 occupiers.

Ontario Municipal Employees Retirement System (OMERS) acted through its real estate subsidiary, Oxford Properties. Temasek is one of Singapore's two sovereign wealth funds. The other is GIC.

Paul Brundage, executive vice president and senior managing director, Oxford Properties Europe, said: 'The Blue Fin Building is an iconic asset located in the heart of London’s vibrant South Bank district and is a great addition to Oxford’s European portfolio, which now stands at over CA$7 bn (€4.8 bn) in assets under management in London and Paris.

'This transaction reinforces Oxford’s belief that specific emerging “live-work-play” destinations will outperform over time as a result of infrastructure improvements and shifting occupier dynamics. We are excited to enter into this transaction with Time Inc. and look forward to building a strong relationship with them in the years ahead as an important occupier and customer,' Brundage said.

This transaction represents Oxford Properties' second joint venture in London with Temasek after their first joint venture acquired MidCity Place.