Oxford Properties, the global real estate arm of the Ontario Municipal Employees Retirement System (“OMERS”), in a joint venture with Temasek has announced the signing of an agreement to purchase the 46,174 m² (497,021 ft²) Blue Fin Building in London, UK from a subsidiary of Time Inc. for €578 mln (£415 mln) The deal is expected to close by the end of Q4 2015.
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 €4.8 bln (CAD 7 bln) 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. This transaction represents the second joint venture in London with our partner Temasek as we look to build on our successful partnership at MidCity Place, London.”
Time Inc. executive vice president Jeff Bairstow commented: “We are very pleased with the outcome of this transaction. It’s logical for us to monetize this valuable asset and place it in the hands of professional investors with proven track records. As part of the sale, we will lease back space at the Blue Fin Building and it will remain our UK headquarters. Since Time Inc. became an independent US public company in 2014, Time Inc. UK has invested in expanding its brands, content and audiences into new revenues streams, through a combination of organic investment and acquisition. These investments allow us to more effectively fulfil consumer passions with targeted content, products and services; as well as serve the advertisers who wish to reach them.”
The building is 100% leased, with Time Inc. UK remaining as the majority occupier under a lease back of approx. 14,864 m² (160,000 ft²), and the balance being multi-let to a diversified tenant base of 12 occupiers. Time Inc. UK has occupied the site since 2007 when the building was originally developed.
Source: Oxford Properties Group
