Ontario Municipal Pension Buys $227 Million Paris Office Building


Oxford Properties Group, the real estate arm of the Ontario Municipal Employees Retirement System (OMERS), has completed the $227 million purchase of Paris office building, according to the Wall Street Journal.

The pension fund is make nearly $800 million worth of investments in Paris over the next three years.

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Oxford, the real-estate arm of Canadian pension fund OMERS Worldwide Group of Companies, told The Wall Street Journal it purchased 92 Avenue de France from a joint venture between German companies GLL Real Estate and Union Investment Real Estate GmbH.

Oxford made its first Paris acquisition in September. With its second deal the group is almost halfway to its €1 billion, three-year target for the city.


Over the last year, “London has become more expensive than Paris,” said Michel Vauclair, an executive at Oxford. He also noted that rates for long-term debt in euros are more favorable than in sterling.


With London’s property market booming, it has been challenging to acquire high-quality assets preferred by pension funds, Mr. Brundage said. “Not impossible, but challenging,” he said, noting as demand pushes up prices, “it’s harder to meet total return expectations” in the U.K. capital.


92 Avenue de France is a 235,000 square foot office located just over a mile from the Gare de Lyon train station. It is entirely leased to Réseau Ferré de France, the state-controlled manager of France’s railways.

OMERS managed $65.1 billion in assets as of December 31, 2013.


Photo by  Taylor Miles via Flickr CC License

Canada Pension Teams With Hermes, Invests in Massive London Real Estate Project

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The Canada Pension Plan Investment Board (CPPIB) has teamed up with Hermes Real Estate to invest in a 1.5 million square foot, partially developed London property.

The building, Wellington Place, will include offices, apartments and retail space.

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Hermes Real Estate, the pension fund manager owned by the BT Pension Scheme, is selling 50% of the development phase of Wellington Place in Leeds to CPPIB.

The 1.5m sqft project, which includes office, residential and retail, has a £185m (€232.7m) total gross development value.

Hermes said 35,000 sqft of offices in Wellington Place was completed, with construction underway on a further 105,000 sqft.

MEPC, which is managing the project, has leased most of the scheme’s first building and is in discussions with office occupiers for further phases.

Three further buildings are planned to deliver an additional 317,000 sqft of prime office space.

Andrea Orlandi, Head of Real Estate Investments Europe at CPPIB, said of the deal:

“We are pleased to build on our existing partnership with Hermes Real Estate through this exciting development in Leeds and see this as a strong complement to our existing office portfolio in London. Together with Hermes Real Estate and MEPC, we aim to make Wellington Place the new premier business location in Leeds with state-of-the-art office space, an attractive public realm, great transport links and full access to amenities.”

The CPPIB manages $206 billion in assets for the Canada Pension Plan.