In a significant move that reshapes Western Canada’s commercial real estate landscape, Oxford Properties Group has acquired Canadian Pension Plan (CPP) Investments’ stake in a substantial office portfolio spanning multiple cities across Western Canada, sources confirmed yesterday.
The transaction, valued at approximately $780 million according to market analysts, includes premium office properties in Vancouver, Calgary, and Edmonton – cities experiencing varying degrees of post-pandemic recovery in their commercial real estate markets.
“This acquisition represents Oxford’s confidence in the long-term viability of quality office assets in key Western Canadian markets,” said Emma Richardson, commercial real estate analyst at Desjardins. “While Calgary continues to face higher vacancy challenges, Vancouver’s office market has demonstrated remarkable resilience with vacancy rates below many other major North American cities.”
The portfolio encompasses approximately 2.4 million square feet of office space across 11 properties, including several LEED-certified buildings that command premium rental rates due to their sustainability credentials and prime locations.
For CPP Investments, the divestiture aligns with the pension fund’s evolving real estate strategy, which has increasingly focused on logistics, data centers, and residential sectors since the pandemic altered workplace patterns. The pension giant continues to maintain significant real estate holdings globally worth over $45 billion.
“CPP Investments’ decision to sell doesn’t necessarily signal a lack of confidence in these markets,” noted James Chen, Director at RBC Capital Markets. “Rather, it reflects strategic portfolio rebalancing as institutional investors recalibrate their commercial real estate exposure in response to changing work patterns.”
Oxford Properties, the real estate arm of OMERS (Ontario Municipal Employees Retirement System), has been actively expanding its North American portfolio despite lingering uncertainties in the office market. This acquisition bolsters its already substantial presence in Western Canada.
Industry insiders suggest Oxford secured the portfolio at an advantageous capitalization rate compared to pre-pandemic valuations, though exact terms remain undisclosed. The deal reportedly includes properties with strong tenant rosters dominated by government agencies, law firms, and resource companies with long-term leases.
The transaction comes amid a broader evolution in Canada’s commercial real estate sector, where investors increasingly differentiate between trophy assets in prime locations and more vulnerable B-class properties. The former continue to attract institutional capital while the latter face greater challenges in the hybrid work environment.
Both Oxford Properties and CPP Investments declined to comment on specific financial details when reached by CO24, but industry sources confirmed the deal closed last week following regulatory approvals.
What remains to be seen is whether this major transaction signals growing institutional confidence in Western Canada’s office market recovery or simply represents opportunistic buying amid market uncertainty. For now, Oxford’s substantial bet suggests at least one major player sees enduring value in these assets despite ongoing workplace transformation.
CO24 Business will continue monitoring how this transaction impacts Western Canada’s commercial real estate valuations as markets digest this significant portfolio transfer between two of Canada’s largest institutional investors.
