Madison International has placed a 50% stake in Oxford Properties’ Paternoster Square properties under offer for £200m.
The price for the share in King Edward Court at 10 Paternoster Square and St Martin’s Court at 10 Paternoster Row, EC4, reflects a yield of 4.5%. The deal is expected to sign as soon as next week.
The deal would be Madison’s first since it raised $1.4bn (£1.1bn) in equity in July to buy property in the US and Europe, with a particular ambition to take advantage of uncertainty in the UK market following the EU referendum.
Oxford has taken the opportunity to sell stakes in several of its London assets over the past two years, including Watermark Place, EC4, and the Blue Fin Building, SE1, as the Canadian fund manager looks to grow its business through being an asset manager as well as owner.
St Martin’s Court is a 109,361 sq ft building let to CBRE, which accounts for 73,667 sq ft of the space. Other tenants include energy commodities trader Green Network Energy, Mitsui Bussan Commodities and Walter Capital.
King Edward Court totals 239,475 sq ft and is the headquarters of the London Stock Exchange. The stock exchange sublets to tenants including Portugese bank Grupo Banco Espirito Santo and Numis Securities.
Oxford acquired St Martin’s Court from Legal & General in 2012 for £110m and King Edward Court next door was subsequently bought from Mitsubishi Estate Company in 2013 for £235m.
CBRE is acting for Oxford Properties; Madison is unrepresented.
All parties declined to comment.
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