Oxford Properties, the property arm of Canada's OMERS pension fund, is in pole position to acquire European property fund manager M7, according to media reports.
M7 revealed last week that it was in negotiations with an unnamed buyer to take over the firm, which has since been tipped as Oxford Properties. Set up in 2009 by chief executive and now executive chairman Richard Croft, M7 manages over 830 assets comprising 66 million ft2 valued at €5 bn on behalf of real estate investors such as Blackstone, Centerbridge, M&G and HIG Capital.
Oxford Properties has been expanding its Asia Pacific business over the last two years with a view to scaling APAC to 25% of its balance sheet, the company has said. The acquisition of M7 would expand its European presence, where it has been focusing on logistics in recent months.
News of a potential takeover bid for M7 stalled the IPO for the newly-launched Mailbox REIT on Friday. M7 is owner and asset manager of the vehicle, which owns the office-led Mailbox asset in Birmingham. The property is valued at £179 mln (€196 mln).
‘M7 Real Estate is the current ultimate beneficial owner of the property and, post IPO, would act as both the company’s asset manager in respect of the property and as its AIFM,’ Mailbox said in a statement.
While both the Board and M7 Real Estate’s management team remain fully committed to the IPO, and the undisclosed investor is supportive of it, all parties feel it is prudent and fair to prospective shareholders in the company to wait until there is certainty regarding any potential transaction before continuing with an IPO for the company, Mailbox said.
A further announcement is expected imminently.
