Oxford Properties Group, acting alongside Logistics Capital Partners, has acquired a 15-acre site in Heathrow, London. Oxford’s acquisition marks its first direct logistics investment in Europe, with plans to redevelop the site to provide a market-leading purpose-built prime logistics space. The site is located immediately adjacent to the east of London Heathrow Airport perimeter, one of the world's busiest international passenger and cargo airports, and a prime location for logistics real estate with excellent connectivity to Central London and the rest of the UK via the nearby M25 and M4 motorways. The purchase price was not disclosed.
Jo McNamara, Head of Europe at Oxford Properties, commented: “Logistics continues to be one of our highest conviction strategies globally; we continue to believe in the secular shifts underpinning the sector, including e-commerce penetration and evolving supply chains, that will continue to drive robust occupier demand against a limited supply of prime new space. This demand and supply imbalance for new, prime logistics space is particularly apparent around major cities where there is significant competition from alternative uses. This acquisition represents an exciting addition to our global portfolio, and we are pleased to be partnering with LCP, a highly experienced team with an impressive track record in the European logistics space”.
James Boadle, Head of UK and Head of Logistics & Residential, Europe at Oxford Properties, added: “The transaction provides a rare opportunity to develop a high-quality large-scale scheme in this strategic urban location alongside a best-in-class operating partner in LCP, which shares our vision of creating a next-generation scheme on the site. It also provides an attractive entry point of scale for Oxford’s first direct European logistics investment, as we look to expand further into the sector over the coming years.”
John Pagdin, Head of UK at Logistics Capital Partners added: “LCP is excited to work alongside one the highest calibre global investors, such as Oxford Properties, in securing this truly exceptional west London site. These types of prime London logistics development opportunities are indeed rare, particularly in terms of the scale of the potential project, and we look forward to bringing forward a best in the class scheme – unique in its ability to serve not only London Heathrow Airport with private dedicated access but also the west London delivery market. It is a testament to the virtues of the respective Oxford Properties and LCP teams that we have been able to secure this opportunity in the face of what was intense market competition."
James Markby, Managing Director at LCP commented: “This rare strategic site, with Oxford Properties as a new capital partner, further marks our intentions in the UK. It was undertaken during a challenging Covid operating environment, and is a perfect illustration of our platform and capabilities across the seven countries we operate in.”
