Oxford Properties, Ivanhoé Cambridge Partner on IDI Logistics Deal
IDI Logistics, in its 30-years of operation, has developed more than 100 world-class business parks and 750 warehouses totaling more than 200 million square feet throughout North America.
ATLANTA—Ivanhoé Cambridge, which acquired locally based logistics company IDI Logistics in late November, now has a 50-50 partner—Oxford Properties—in the locally-headquartered firm.
The two Canadian firms announced today they had signed a 50-50 joint venture partnership in IDI Logistics. Ivanhoé Cambridge, a real estate subsidiary of the Caisse de dépôt et placement du Québec (cdpq.com), one of Canada’s leading institutional fund managers, acquired IDI Logistics from Brookfield Asset Management on Nov. 30, 2018. No financial details on the joint venture partnership or the initial acquisition deal with the Brookfield-sponsored real estate fund in November by Ivanhoé Cambridge were released.
A Bloomberg report, which cites sources with knowledge of the transactions, states that Ivanhoé Cambridge paid approximately $3.7 billion to Brookfield for IDI Logistics in November and sold the 50% interest in the firm to Oxford Properties, the real estate arm of OMERS, for approximately $1.7 billion.
“We are delighted to be working with Oxford on this venture for the future success of IDI Logistics, a company which consistently builds, operates and leases some of the best bulk-and-big-box logistics real estate in the United States,” says Mario D. Morroni, executive vice president, industrial, North America at Ivanhoé Cambridge. “This transaction perfectly illustrates our plan to capture the growth in demand for logistics globally, which includes a meaningful increase of our investments in that sector across four continents.”
“This acquisition represents Oxford’s first logistics acquisition in the United States, is complementary to our Canadian industrial portfolio and is consistent with our investment strategy to establish and grow a portfolio of best-in-class logistics assets across the globe,” says Kevin Egan, head of New York and US investments at Oxford Properties.
IDI Logistics, in its 30-years of operation, has developed more than 100 world-class business parks and 750 warehouses totaling more than 200 million square feet throughout North America.
The joint venture will own the operating and development company, a portfolio of 111 quality operating assets covering 31 million square feet, as well as 35 development projects covering 16 million square feet and IDI’s land bank of 33 land parcels allowing for an additional build-out potential of 17 million square feet.
Mark Saturno, CEO of IDI Logistics, added, “IDI is excited to welcome Ivanhoé Cambridge and Oxford Properties as new owners. Ivanhoé Cambridge and Oxford Properties bring both management expertise and capital that will support IDIL’s growth and continue its 30-year track record of success.”
Ivanhoé Cambridge was advised by Goldman, Sachs & Co. LLC as financial advisor and by Cushman & Wakefield as real estate advisor. Oxford was advised by Morgan Stanley as financial advisor with real estate advisory services provided by CBRE National Partners.
IDI Logistics announced on Tuesday that construction had begun on a new building in Stateline Business Park, a 4-million-square-foot industrial park developed by IDI Logistics starting in 2005. The park is two miles from I-55 and the FedEx Air Cargo Superhub. Building G will be the 10th and final new facility in the park.
Construction on the 352,800-square-foot Building G, located at 1280 Stateline Road East in Southaven, MS., is scheduled to be complete by June 2019.