CPPIB buys 50% stake in Milton Park

The CPP Investment Board has bought a 50% stake in the Milton Park business park, in Abgindon, Oxfordshire, for £200m.

It bought its share in the 250-acre park from Hermes Investment Management, building on the companies’ existing relationship as joint owners of Wellington Place in Leeds city centre and the first phase of the £1bn Paradise scheme in Birmingham.

MEPC continues to manage the 3.4m sq ft park on behalf of Hermes, and is currently overseeing the construction of Park Drive East, a speculative development that will boost laboratory space and high-tech office space in the region.

Milton Park accommodates leading global science and technology companies, as well as emerging businesses, including a number of spin-off organisations from the nearby University of Oxford. It is home to 9,000 people and 250 organisations.

It includes the head offices of Alamy, RM Education, Halliburton and Taylor & Francis.

Chris Taylor, head of private markets at Hermes, said: “The deal marks another significant milestone in our growing relationship with CPPIB. Our interests are well aligned and, as such, we have been able to work together to deliver strong financial returns and positive impact upon society and the environment.

“Recycling capital in this manner allows us to adequately diversify our global portfolio and invest further in existing and new strategic holdings, where we believe additional value can be added in line with our focus on the occupational impacts arising from growing trends of urbanisation, globalisation, technology and demographic shifts.”

Andrea Orlandi, managing director at CPPIB, added: “We see significant future growth potential at Milton Park as it continues to build on its attractiveness to the life science sector – a major pillar of the thriving Oxford economy.”

James Dipple, chief executive of MEPC, said: “This investment is testament to Milton Park’s reputation and MEPC’s excellent track record of delivering strong investor returns by meeting the needs of our customers through a clear understanding of their occupational requirements.

“With the added support of CPPIB, we will continue to accommodate the expansion of businesses on the park through an identified investment programme set out in our long-term business plans.”

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