Canadian pension fund Oxford Properties has exercised its pre-emption right to purchase a 50% stake in Watermark Place, EC4.
The surprise buy comes after German close ended fund, Hannover Leasing, made an off-market approach to Swiss bank UBS to buy the half-share in the 514,000 sq ft building for around £185m – a 5.7% yield. It would have been Hannover’s first UK acquisition.
However, Oxford Properties, which owns the other 50% in the property, has now taken full ownership.
Watermark Place is fully let to Japanese bank Nomura.
Paul Brundage, senior managing director of Oxford Properties Europe, said: “Our strategy is to build a portfolio of core and value added investments delivering superior risk adjusted returns for OMERS.
“Watermark Place was our first London investment and the acquisition of UBS’s 50% stake at this time is in line with our strategy and further demonstrates our commitment to the London market.”
Sam Sananes, portfolio manager for the UBS fund that owned the 50% stake, said: “The sale is consistent with our strategy for the Fund, which will focus on value added opportunities in Central London offices.”
samantha.mcclary@estatesgazette.com
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