£145m extension to St James’s Market Partnership announced

The Crown Estate and Oxford Properties have agreed a £145m extension to the St James’s Market Partnership with the establishment of a new joint venture for a 160,000 sq ft commercial block between St Albans Street and Haymarket in London’s St James’s.

22 May 2015

View over Regent Street and St James's, London

The new 50:50 partnership builds on The Crown Estate and Oxford Properties’ existing £320m St James’s Market joint venture, established in 2013 to redevelop two neighbouring blocks in between Regent Street St James’s and Haymarket. Works are currently underway on site to deliver 260,000 sq ft of retail, restaurant and office accommodation, alongside transformational public realm improvements, with completion expected in 2016.

As with the first joint venture between the two parties, The Crown Estate will retain the freehold and act as asset manager on behalf of the partnership. Oxford Properties will play an active role in bringing the strength of its UK and global platform to bear to complement the expertise of The Crown Estate’s team.

Paul Clark, Director of Investment and Asset Management at The Crown Estate said: “We’re delighted to be extending our partnership with a high calibre global investor like Oxford Properties. This transaction emphasises our commitment to developing the relationships we’ve established with a small number of strategic investment partners, like Oxford Properties, which share our values and long term outlook.”

Paul Brundage, Executive Vice President and Senior Managing Director, Oxford Properties Europe commented: “We’re equally delighted to be extending our relationship with The Crown Estate with this investment. St James’s is an area of London we are very excited about and the creation of a second joint venture with a like-minded strategic partner further provides us with the opportunity to realise our European strategy to invest in core markets and core assets alongside a development program to enhance portfolio returns. We take a long-term view and are committed to delivering our investment objectives to become a C$10bn real estate business in Europe by 2018.”

The Crown Estate’s £500m investment in its St James’s portfolio, which includes around half of the property in the area, is focused on redeveloping historic blocks to create new, modern retail, leisure and office destinations in this part of the West End, securing the area’s position for future generations. 

The Crown Estate focuses its investment on four key sectors; central London’s West End, prime regional retail and leisure schemes, rural land and offshore wind. It currently manages almost £1.5bn of third party funds within a small number of strategic joint ventures.

Oxford Properties is the C$34bn property investment arm of the Ontario Municipal Employee Retirement System, OMERS.  In Europe the portfolio encompasses prime Central London and Paris office and retail assets as well as several high-profile developments. The approach is in line with the global strategy to grow the assets under management to C$50bn by building focused portfolios and platforms of scale in targeted asset classes and markets with preferred partners.

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