UBS grants 250-year ground lease to Oxford Properties at Watermark Place

UBS Global Asset Management today announced that its UBS South East Recovery Fund (SERF) has granted a 250 year ground lease to subsidiary of Ontario Municipal Employees Retirement System (“OMERS”), Canada, to develop the landmark 530,000 sq ft, Watermark Place, London, situated on the River Thames EC4.

OMERS is Canada’s third largest pension fund with its real estate investments managed through Oxford Properties Group (“Oxford”). Oxford owns and manages a diversified global portfolio, exceeding 40 million square feet with a strong mandate from OMERS to build a global real estate platform. Christopher Voutsinas, Executive Vice President of Global Investment, Oxford said: “we are excited about our relationship with UBS and the exceptional development team that has been assembled to deliver an exceptional property to the marketplace”. Andrew Trickett, Vice President of Investment, added “this development represents a unique investment opportunity for Oxford and an outstanding space offering to City occupiers.”

Alex O’Connell, Executive Director, UBS Global Real Estate said, “We are delighted to have Oxford on board as developer/leaseholder. This is a very exciting project as it will provide one of the largest buildings in the city in the early part of this cycle”.

Oxford Properties will pay 50% of the rentals of the completed building to UBS SERF.

Oxford and City Offices LLP, the development manager, have appointed Sir Robert McAlpine as contractor for the c. £200m reconstruction and they will start on site next week. The development will provide 530,000 sq ft over basement, ground and 11 upper floors and with a 20,000 sq ft landscaped roof terrace at level six over looking the Thames. Watermark Place will be finished to shell and core by Q1 2009 and is due for practical completion at the end of September 2009. CBRE represented both UBS and Oxford. CBRE and Knight Frank are letting agents for the scheme. The architect for Watermark Place is Fletcher Priest.