Press Release: Oxford Properties Group Inc.
June 9, 2000
TORONTO -- Jon Love, president and CEO, Oxford Properties Group (TSE:OXG) yesterday announced the acquisition of
interests in 2.9 million square feet of office space that will see Toronto's 960,000 square foot Bell Trinity Square
and Calgary Place, a 612,000 square foot Class A office property located in downtown Calgary, added to Oxford's
portfolio. Oxford has been appointed the property manager for all of the properties acquired in two separate transactions.
In the first transaction, five office buildings, four of which are located in Toronto, were acquired through a
joint venture owned one-third by Oxford and two-thirds by an affiliate of GE Capital Canada Inc. The portfolio
acquisition price was $323.6 million and the purchase was financed by amongst other things a $242.7 million non-recourse
mortgage facility provided by GE Capital. The aggregate purchase price of this portfolio results in an acquisition
cost of $145 per rentable square foot. GE Capital, as asset managers of the Oxford-GE joint venture, will oversee
the asset disposition program for the non-strategic assets.
The second transaction, a 50:50 joint venture of Oxford and an institutional investor, is scheduled to close by
mid-June and involves the acquisition of Calgary Place for $68.4 million, or $112 per rentable square foot. Oxford
will finance the acquisition of its interest with a non-recourse first mortgage facility of $22 million.
"As we take customer value to a new level by leveraging our size and Internet enabled technologies, Oxford
is pleased to enter into beneficial joint venture relationships with GE Capital and our other partners allowing
us to acquire strategic assets like Calgary Place and Bell Trinity Square," stated Jon Love. "Our commitment
to our new tenants is that we will strive to provide them with meaningful workplace experiences by offering extended
services. We will measure our success by the increasing number who choose to spend their weekday in an Oxford building."
GE Capital Real Estate (www.gecapitalrealestate.com) provides debt and equity financing to the real estate industry
in the U.S., Canada and worldwide. GE Capital finances or owns interests in over $4 billion of real estate in Canada.
GE Capital, with assets of more than U.S. $350 billion, is a global, diversified financial services company with
28 specialized businesses.
Oxford Properties Group (TSE:OXG) owns interests in 44 million square feet of office, retail and industrial space
and manages a total of 66 million square feet of commercial properties. Oxford, a full service real estate operating
company, leverages its size, office building clusters and Internet enabled technologies to take customer service
to a new level and deliver on its commitment of "building relationships." Oxford's strategy is to build
prominent positions in its target markets through the ownership of prime investment real estate assets with joint
venture partners, and to provide value-added business solutions to its tenant customers. Oxford Properties is headquartered
in Toronto, Canada. Oxford - www.oxfordproperties.com
Summary Table ------------- Oxford Rentable Oxford Square Property Location Area Interest Feet -------- -------- --------- -------- -------- Bell Trinity Square Toronto 960,000 33.3% 320,000 Winnipeg Square Winnipeg 621,000 33.3% 207,000 North York Square Toronto 228,000 33.3% 76,000 1500 Don Mills Toronto 219,000 33.3% 73,000 180 Wellington Street West Toronto 210,000 33.3% 70,000 --------- --------- 2,238,000 746,000 Calgary Place Calgary 612,000 50% 306,000 --------- --------- 2,850,000 1,052,000 --------- ---------
For further information
Oxford Properties Group: Al Mawani, Executive Vice President, Business Development and CFO (416) 865-8313, amawani@oxfordproperties.com
GE Capital Real Estate: Richard Grimaldi, Managing Director, (416) 842-1721, rich.grimaldi@gecapital.com