Oxford buys into Investa office platform
Canadian investment house Oxford Properties has bought out Macquarie’s position in the management platform of office landlord Investa as it steps up its involvement in the Australian market.
The investment has been long anticipated after Oxford, the real estate arm of Canadian pension fund giant OMERS, pipped US heavyweight Blackstone in a $3.4 billion deal to take over and privatise the Investa Office Fund two years ago.
The formerly listed fund was one part of the broader Investa platform, which included the unlisted Investa Commercial Property Fund, which had taken control of the management rights for the entire platform after acquiring them for $90 million from the previous holder, Morgan Stanley’s property arm.
In a surprise move during the lengthy takeover battle for the listed IOF, the unlisted Investa sold a 50 per cent stake in the rights to Macquarie’s property arm.
It is that stake – market sources estimated its value could be around $50 million – that Oxford has acquired almost two years after completing its takeover of the listed Investa fund, renaming it Oxford Investa Property Partnership.
“Our relationship with Investa has grown from strength to strength since our acquisition of IOF and the formation of OIPP, so it was a natural next step for Oxford to take a substantial equity position in IOMH [Investa Office Management Holdings,” Oxford’s head of Australia, Alec Harper, said.
“The investment gives Oxford immediate access to a best-in-class operating platform, which will become our partner as we look to grow our presence in Australia.”
The investment into the platform will bolster Oxford’s operations in the local market, bringing Investa on board to partner on its office assets. The Investa platform will also be turned in a fresh direction as the Canadian group pursues a build-to-rent strategy in this market.
The first fruits of that strategy are slated to emerge on Pitt Street, above the new metro station, where Oxford is developing a commercial office tower as well as a build-to-rent facility.
Oxford swung into action early last year, soon after taking full control of the listed Investa fund, launching a major sell-down of assets held in its portfolio. The divestment program ultimately extended to 13 assets and raised $2.8 billion in net proceeds.
“Australia is one of our highest conviction markets and our largest presence in Asia Pacific,” Oxford’s head of the Asia-Pacific region, David Matheson, said.
“The investment is a natural fit; our investment into IOMH gives immediate scale to our on-the-ground capabilities in Australia and will accelerate our ability to deploy capital in this market.”
