A risky bet on Hudson Yards has been crucial for this Canadian fund’s global push

Oxford partnered with Related amid the 2010 real estate crash

New York /
Mar.March 07, 2019 12:30 PM

A rendering of 35 Hudson Yards and Oxford president Michael Turner (Credit: Oxford Properties)

A Canadian pension fund’s big bet on an uninspiring rail yard in the Far West Side of Manhattan has paid off handsomely, and it’s just getting started in New York and other gateway cities.

Oxford Properties Group, the real estate arm of the Omers pension fund for retired police officers and city clerks in Ontario, teamed up with Related on the risky Hudson Yards project in 2010, in the midst of the the real estate crash. Related’s previously partner Goldman Sachs had just changed its focus from long-term plays and backed out.

“Those did not feel like cheap decisions. They all felt like we were paying too much and maybe the world was ending,” Oxford president Michael Turner told Bloomberg. “We happened to be able to be there as a sponsor of quality, with fortitude and a balance sheet to make a decision.”

Jay Cross, Related’s president of Hudson Yards, is a Canadian who knew Oxford’s former president Blake Hutcheson. He worked with Cross on the deal, in which Oxford and Related are 50-50 partners on the general group that oversees the entire development.

Last year, Omers reported returns of 8.7 percent on real estate investments. The Hudson Yards project is part of the Oxford’s push to become an increasingly global presence, Bloomberg reported.

A decade ago, Omers had 96 percent of its assets in Canada. Now, more than 55 percent is invested abroad, with total assets approaching $45 billion. Oxford is looking to boost its exposure in the industrial and multi-family space — and it’s targeting cities that attract technology and talent like New York, London, Sydney and Toronto.

Last year, Oxford bought the southern portion of St. John’s Terminal in Manhattan for $700 million and is planning a 1.3 million-square-foot office to be anchored by Google. [Bloomberg] — Meenal Vamburkar


Related Articles

arrow_forward_ios
(Image by Wolfgang & Hite via Dezeen)

Hudson Yards megadevelopment inspires a new line of sex toys

Hudson Yards megadevelopment inspires a new line of sex toys
Related's Jamar Adams and Steve Ross with 14-06 Gateway Boulevard (Credit: Getty Images and Google Maps)

Related is the latest developer to target the Rockaways

Related is the latest developer to target the Rockaways
The Observation Deck at Hudson Yards (Credit: Adam Pogoff)

Views from 1,100 feet: A tour of Related’s “the edge,” the tallest outdoor observation deck in the Western Hemisphere

Views from 1,100 feet: A tour of Related’s “the edge,” the tallest outdoor observation deck in the Western Hemisphere
(Photo illustration by The Real Deal)

This office redeveloper is going all in

This office redeveloper is going all in
Clare Newman with Governors Island (Credit: Governors Island, Getty Images)

Governors Island redevelopment opposed as excessive

Governors Island redevelopment opposed as excessive
Blackstone's Ken Caplan (iStock; Blackstone)

Industrial now 36% of Blackstone’s RE portfolio

Industrial now 36% of Blackstone’s RE portfolio
Almanac Realty Investors managing director Matthew Kaplan (Almanac Realty; iStock)

Workforce housing investor gets $320M boost

Workforce housing investor gets $320M boost
Corcoran to sublet 50K sf in IBM Building

Corcoran to sublet 50K sf in IBM Building

Corcoran to sublet 50K sf in IBM Building
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...