Oxford Properties Group and Logistics Capital Partners have formed a new co-investment joint venture, to acquire a 297-hectare site near Birmingham in the UK’s West Midlands. The JV will develop an 8 million sq ft (743,000 sq m) logistics hub and rail freight terminal.
The scheme, dubbed West Midlands Interchange, will entail investment of about £1 billion. Oxford will provide the majority of the capital.
West Midlands Interchange is situated to the north-west of Birmingham in South Staffordshire and close to junction 12 of the M6 motorway. It is intended to be a technologically advanced and environmentally sustainable development which meets modern occupiers’ efficient operational and environmental requirements.
The project already has planning consent, obtained by the site’s vendors, the shareholders of Four Ashes Ltd, a three-way partnership including Kilbride Holdings and Grosvenor Group’s Indirect Investment business.
Planning consent already achieved
Infrastructure works will start in the first half of next year and the first buildings will be started in 2022 ready for occupation in 2023. Units will range in size from 200,000 square feet to over 1 million square feet, and the buildings will have an eaves height of up to 30 meters.
The JV said in a statement that 8,500 jobs will be create directly and a further 8,100 indirectly.
The project will create a new strategic rail freight interchange, which will provide occupiers with intermodal access and the site’s masterplan envisages the creation and maintenance of two new country parks with a combined 109 acres. Other green credentials include warehouse roofs capable of accommodating photovoltaic panels, enabling the generation of renewable energy.
Last year Oxford announced its intention to deploy £3 billion of capital in the European logistics sector over the next five years and it made its first direct European investment in 2020, with the acquisition of a 15-acre site in Heathrow alongside LCP.