Brookfield Office Properties has confirmed that is has taken ownership of the London Wall Place development site, which it will develop with Oxford Properties.
The North American pension fund giant has taken a long-leasehold of the site following the assignment of developer Hammerson’s option agreement, approved by the City of London Corporation.
The initial payment to acquire the option was £1.8m for design work carried out, with an additional £22.2m paid to the City of London today.
Brookfield and Oxford Properties, the real estate arm of the OMERS Worldwide group of companies, are funding their pro-rata shares. Further payments are due over the next few years as the development progresses.
The site has planning permission for a two office buildings of 300,000 sq ft and 200,000 sq ft.
Martin Jepson, Brookfield Europe senior vice-president, development and investment, said: “London Wall Place is a great acquisition for us. The size of the site and its proximity to good transport links and local amenities makes it one of the most attractive development sites in the City.
“We are also extremely pleased to be launching a joint venture initiative in partnership with Oxford Properties to develop the site. Like Brookfield, Oxford Properties has a long track record of delivering and managing quality office assets and we look forward to maximising the commercial potential of the site through the application of our joint expertise.”
Paul Brundage, Oxford executive vice-president, senior managing director Europe, said: “Our investment in London Wall Place is consistent with Oxford Properties’ UK strategy and is further evidence of our long-term commitment to, and confidence in, the strength of the London market.
“As one of London’s prime development sites, our investment in London Wall Place represents targeted expansion of the development arm of our European portfolio.
“London Wall Place is a direct complement to our wider existing investment and development portfolio, which includes 122 Leadenhall, MidCity Place, Watermark Place and Green Park.
“We are very pleased to partner with Brookfield and look forward to leveraging the complementary strengths of our two organisations to maximise the development potential and investment returns of this landmark site.”
Michael Cassidy, the elected chairman of the City of London Corporation’s property investment board, said: “This is a globally important headquarters office site in the City of London and will benefit from the arrival of the new Crossrail link in 2018, providing a speedy connection to Heathrow.
“I am really pleased that Brookfield and Oxford Properties have taken on this site. It epitomises the magic cluster effect of excellent transport links, first-class street infrastructure, highly attractive workplaces and the available supply of a highly skilled work force, all of which helps to maintain the City as a major world financial centre.”
bridget.o’connell@estatesgazette.com
