The C$60 billion (US$57.9 billion) Ontario Municipal Employees Retirement System's real estate arm is pairing up with the property business of the British royal family in a £320 million ($484 million) venture to jointly own the commercial portion of London's St. James' Market development.
Toronto-based OMERS' Oxford Properties Group and the £8 billion Crown Estate will each hold a 50% stake and own 150-year leasehold interests for two blocks in London's West End, the Crown Estate said in a news release.
The Crown Estate will lead the development and asset management of the property.
“We have very active involvement — from procurement to leasing to you-name-it,” said Paul Brundage, London-based executive vice president, senior managing director at Oxford Properties. Crown Estate “is great, they're a tremendous partner.”
This is the Crown Estate's third joint venture in London. It's also in a joint venture with Norges Bank Investment Management, which manages Norway's $728 billion Government Pension Fund Global, Oslo, on the Regent Street Partnership in London's largest shopping district, and with the C$47.4 billion Healthcare of Ontario Pension Plan, Toronto, on the London Gateway seaport development.
The Crown Estate manages property owned by the Crown but that is not the private property of the royal family.