Oxford Properties has exchanged on the sale of a 50% stake in its Paternoster Square office assets to Madison International Realty for about £200m.
The assets include King Edward Court, home of the London Stock Exchange and St Martin’s Court, CBRE’s head office in the City of London.
Oxford acquired St Martin’s Court in October 2012 for £110m and King Edward Court in April 2013 for £235m.
As part of Oxford’s ownership of the two assets, Oxford also managed the Paternoster Square Estate.
Oxford will act as asset manager for the new joint venture.
“We are delighted to establish a new joint venture with Madison International Realty, a partnership that we hope to develop further across Europe and North America,” said Paul Brundage, executive vice president and senior managing director Europe at Oxford.
“St Martin’s Court and King Edward Court represent cornerstone assets within Oxford’s London portfolio and Oxford remains committed both to these investments and the relationships we have built with the London Stock Exchange and CBRE over the years. This transaction is in line with Oxford’s strategy to co-invest with strategic partners and lever our European platform to deliver enhanced returns.”
Ronald Dickerman, president and founder of Madison International Realty added: “King Edward Court and St Martin’s Court are two extremely high quality, well-let assets in an iconic location directly next to St Pauls’ Cathedral in the City of London which make strong additions to our portfolio.
We have purchased over £300m worth of real estate in London since the EU referendum and have every confidence in both the city’s continued position as a leading global financial centre and its enduring appeal as a destination for international businesses.”
Oxford was advised by CBRE and Ashurst. Madison was advised by Fried, Frank, Harris, Shriver & Jacobson LLP.