Oxford Properties, LCP for JV to develop new logistics hub in Birmingham, UK

WCN Editorial Team 12 Jul 2021 EUROPE BUILDINGS

Real estate developer and manager Oxford Properties Group has formed a new co-investment joint venture (JV) with Logistics Capital Partners (LCP) to acquire and develop a major new largest logistics hub in Birmingham, the UK.

The JV will acquire a 734-acre site near Birmingham and develop it into a new logistics hub along with an associated rail freight terminal.

This site was acquired from the shareholders of Four Ashes Ltd, a three way partnership including Kilbride Holdings and Grosvenor Group’s Indirect Investment business (Grosvenor).

The companies planned to jointly invest £1bn to bring forward the project, which is expected to take several years to complete.

The planned project, named West Midlands Interchange, is set to include eight million ft2 of new logistics hub and a new Strategic Rail Freight Interchange in prime midlands logistics corridor.

Oxford Properties stated that the site has capacity to house new warehouses ranging from 200,000ft2 to more than one million ft2.

The project will create two new countryside parks spanning 109 acres of the site.

As part of project, the companies will also construct a new link road connecting the site to the A5 and A449, improving access to the site.

Infrastructure works at the project site is expected to begin in the first half of next year and construction of the first building will commence in the same year with occupation planned in 2023.

The project is expected to create 8,500 jobs and a further 8,100 indirect jobs.

Oxford Properties Europe Logistics and Residential head James Boadle said: “In recent years we have significantly increased our exposure to the logistics sector globally through several major transactions, including making our first direct investment into European logistics last year with LCP.

“Logistics remains one of our highest conviction calls globally, benefitting from substantial undersupply of prime new space while the growth of e-commerce and demand for expedited supply chains continues unabated, accelerated by the effects of Covid-19.

“The transaction represents a rare opportunity to gain significant exposure at attractive risk-adjusted returns in an increasingly competitive landscape.”

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Illustration of the new major new largest logistics hub in Birmingham, the UK. Credit: Oxford Properties Group.

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