Related Companies and Oxford Properties Group Announce Joint Venture to Develop 26-Acre West Side Yards
NEW YORK, NY - Oxford Properties Group Partners with Related and Provides Additional Experience and Capital to Create New York’s Next Great Neighborhood
Related Companies, the most prominent privately-owned US-based global real estate firm, and Oxford Properties Group, the real estate investment and development arm of OMERS (Ontario Municipal Employees Retirement System), one of Canada’s largest institutional investors, today announced the formation of a joint venture to develop the 26-acre West Side Yards in midtown Manhattan. Related and Oxford will be General Partners in the development. Related was awarded the development rights by the Metropolitan Transportation Authority (MTA) in 2008 and completed all of the necessary land use approvals in December of 2009. Related today executed a binding contract with the MTA to lease the site for 99 years and the joint venture is putting up an additional $21.75 million in deposits.
The West Side Yards is the largest undeveloped single piece of property in Manhattan. The mixed-use master-planned community development will include 12 million square feet of commercial and residential development efficiently designed with cutting edge sustainability features. The master plan features approximately 5,000 residences in nine residential buildings, three world-class corporate headquarters sites, a major destination retail complex including an anchor department store, a 300 room five star and 1,000 room convention hotel, multiple cultural facilities, and a new 750-seat public school, all carefully planned around 12 acres of grand public open space.
“Related is thrilled to partner with OMERS’ Oxford Properties Group on what is destined to be the most defining development opportunity of the 21st Century. Their investment in the West Side Yards is an unequivocal show of confidence in the future of New York. Oxford has an over fifty year track record of success and global reach making them an ideal partner for Related on the West Side Yards,” said Stephen M. Ross, Chairman and CEO of Related Companies.
Jeff T. Blau, President of Related Companies said, “OMERS and Oxford share our long term investment strategy and are well known throughout the world for their real estate and infrastructure investments. We look forward to working with them to write New York’s next chapter and create our City’s next great neighborhood.”
Blake Hutcheson, President and CEO of Oxford Properties Group said, “In our view, this is a world class site and Related is a world class partner. Oxford believes in the future of New York and could not think of a better way to express that confidence than being an integral part of developing the West Side Yards.” said
Key transportation investments are underway throughout the area immediately adjacent to the West Side Yards including the extension of the number 7 subway line providing the development with unparalleled access to every subway line in Manhattan and the conversion of the Farley Post Office into the new Moynihan Station for Amtrak. The West Side Yards is also minutes away from the region’s main rail transportation hub at Penn Station, Hudson River ferry service, the West Side Highway and the Lincoln Tunnel.
Located on the waterfront on the west side of midtown, the West Side Yards will be Manhattan’s new gold coast for corporate and residential tenants. Strategically located at the northern terminus of the new High Line park, with Hudson Park and Boulevard to the north and Hudson River Park to the west, the development will be the fulcrum of a major new open space network on the west side of Manhattan that will serve residents, workers and millions of visitors a year.
New York City Mayor Michael R. Bloomberg said, “The West Side Yards represents a historic development opportunity to create a vibrant new residential and commercial neighborhood just blocks from Midtown Manhattan. Oxford's substantial investment in the project is a major vote of confidence in the future of the area and the City of New York and the latest step towards the realization of our collective vision for it.”
MTA Chairman Jay H. Walder said, "The interest of a strong financial partner reflects the tremendous value of these rail yards and Related's plan to create a world-class district for New York City. We're thrilled to be moving ahead with a deal that maximizes value for the MTA, our customers and taxpayers, and will help us continue the vital investment in our transit system."
Founded 37 years ago, Related Companies is a fully-integrated, highly diversified industry leader with experience in virtually every aspect of development, acquisitions, management, finance, fund management, marketing and sales. The Company’s existing portfolio of real estate assets, valued at over $15 billion, is made up of best-in-class mixed-use, residential, retail, office, trade show and affordable properties in premier high-barrier-to-entry markets. The Company has developed preeminent mixed-use projects such as Time Warner Center in New York and CityPlace in West Palm Beach.
Celebrating its 50th anniversary in 2010, Oxford Properties Group is one of North America’s largest commercial real estate investment, development and management firms. Oxford oversees and manages approximately $18 billion of real estate for itself and on behalf of its co-owners and investment partners including headquarter buildings such as the Royal Bank Plaza in Toronto, Watermark Place in London and Centennial Place in Calgary. Oxford’s investments include office, retail, hotel, industrial and multi-family residential properties.
OMERS is a fully integrated global financial services organization and one of Canada’s largest pension funds. A jointly-sponsored, multi-employer defined benefit pension plan that provides retirement benefits to more than 400,000 members, OMERS has more than $47 billion in net investment assets. The OMERS Worldwide brand represents our investment entities, including Oxford Properties Group, OMERS Private Equity, OMERS Capital Markets, OMERS Investment Management Inc., Borealis Infrastructure, and OMERS Strategic Investments. OMERS was recently named 2010 Pension Fund of the Year, Canada by World Finance magazine.
For more information about Hudson Yards contact Joanna Rose at 212.801.3902 or visit www.hudsonyardsnewyork.com