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Robert.Jervis_43227 Jul 09

£1bn plan to build the UK’s largest logistics site

West Midlands Interchange
West Midlands Interchange j-v formed
A new co-investment joint venture has been formed for the acquisition of a 734-acre site near Birmingham to make way for the development of a major logistics hub. The £1bn commitment has the potential to create thousands of jobs.
Global real estate investor Oxford Properties Group and developer and asset manager of logistics real estate Logistics Capital Partners will jointly invest £1bn to bring forward the West Midlands Interchange project over a number of years, with Oxford providing the majority of the capital and working alongside LCP’s team as development manager.
Planning consent has already been secured by the vendors, which allows for the provision of approximately eight million sq ft of prime logistics space and provides flexibility around the project timeline and scale of units.
The site can accommodate new warehouses ranging in size from 200,000 sq ft to more than one million sq ft.
It is expected that West Midlands Interchange will create 8,500 jobs and a further 8,100 indirect jobs.  It is also expected to generate around £430m of local economic activity each year, and, through the supply chain, create more than £900m of economic activity each year nationally.
James Boadle, head of logistics and residential, Europe at Oxford Properties, 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.
"We are pleased to be again working alongside LCP’s highly experienced and professional team as we deliver a best-in-class logistics park with occupier demand, technological advancements and environmental, social and governance principles at its core."
John Pagdin, head of UK Logistics Capital Partners, added:

"West Midlands Interchange is a fantastic opportunity to build out a uniquely positioned development scheme, allowing us to offer occupiers every possible size, scale, configuration and specification of unit with none of the usual planning delays or uncertainties often associated with schemes of this nature.
"We look forward to progressing first stage preparatory works and welcoming occupiers to this exciting project."
The 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).
Infrastructure works are expected to commence in the first half of next year with the first buildings starting on site in 2022 ready for occupation in 2023