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Omers Acquires London Stock Exchange Building for $364 Million

Ontario Municipal Employees Retirement System’s real estate unit bought the London Stock Exchange’s headquarters from Mitsubishi Estate Co. (8802) for 235 million pounds ($364 million).

The price paid by Omers’ Oxford Properties for the building at 10 Paternoster Square reflects an initial yield of 5.3 percent, Toronto-based Oxford said in a statement today. The London Stock Exchange’s lease for the property in the city’s main financial district runs out in 2028, according to the statement. Other tenants include Portugal’s Grupo Banco Espirito Santo and Numis Securities.

“The prime City core location of Paternoster Square, coupled with the strength of LSE’s lease covenant, will deliver secure risk-adjusted returns,” Oxford Senior Managing Director Paul Brundage said in the statement.

Foreign investors accounted for 88 percent of the property deals completed in the City of London and Canary Wharf banking districts in the first quarter, according to data compiled by broker Cushman & Wakefield Inc., as pension and sovereign wealth funds seek out long-term secure income.

The property at Paternoster Square has 246,000 square feet (22,850 square meters) of space, Oxford said.

To contact the reporter on this story: Patrick Gower in London at pgower@bloomberg.net

To contact the editor responsible for this story: Andrew Blackman at ablackman@bloomberg.net

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