Oxford Properties Group has taken full ownership of seven office towers in Calgary and Vancouver after acquiring the 50 per cent interest that Canada Pension Plan Investment Board (CPP Investments) held in the buildings. The deal to bring the Class AAA and A assets, collectively valued at about CAD $1.5 billion, entirely under Oxford’s control is touted as a new phase of the company’s investment strategy.

“Oxford has been a net seller of office for over a decade to achieve portfolio diversification. We believe now is an opportune time to rotate capital back into this asset class, and this portfolio ticks all the right boxes,” reports Tyler Seaman, executive vice preside with Oxford’s Canadian operations.

The acquisition includes: The Stack, Guinness Tower, Marine Building and MNP Tower in Vancouver; and the Eau Claire Tower, Centennial Place and 400 Third in Calgary. All are considered beneficiaries of the flight to quality that has been occurring in the office market, and are outperforming downtown averages for occupancy and rent in the two cities. Ranging from 177,000 to 1.3 million square feet, for a combined total of slightly more then 4 million square feet, all but two have been built since 2010.

“This transaction involving high-quality office properties highlights our strong, ongoing partnership with Oxford, which has delivered compelling returns for the CPP Fund,” says Sophie van Oosterom, managing director and head of real estate at CPP Investments. “The transaction is a continuation of our real estate strategy to secure strong business plan execution and redeploy capital into new opportunities, supporting the continued growth and performance optimization of our global real estate portfolio.”