LONDON-Pursuing a "global investment mandate" adopted 18 months ago, Toronto-based real estate giant Oxford Properties Group has committed to co-develop a $480-million office building along the River Thames. Under a schedule set by original investor UBS Global Asset Management, the 11-story, 530,000-sf Watermark Place expects to break ground in September and be completed by autumn 2009.

"We are delighted to have Oxford on board as developer and leaseholder," says UBS Global executive director Alex O'Connell. UBS is pursuing the deal for its South East Recovery Fund, a $1.2-billion vehicle that began focusing on UK office buildings in 2004 during the depths of the London office market bust. OPG has now bought in by acquiring rights to a 250-year ground lease, although officials did not provide further details of the investment arrangement.

Mimicking the fast-track schedule of Watermark Place as the sponsors seek to capture a surge of fresh tenant demand, OPG is wasting little time crossing borders with its capital after spending the past decade amassing a diverse portfolio of nearly 40 million sf in Canada. Since the start of 2006, OPG has made direct investments of $2 billion of equity as far a field as Asia and Europe, as well as in the US and South America.