In 2018, we closed on our first major foray into the industrial and logistics sector outside of Canada with a minority, indirect fund investment in GLP EDP. In 2019, we acquired controlling interest in IDI Logistics, one of the USA’s leading developers and managers of logistics real estate, alongside a strategic investment partner. This single transaction immediately gave Oxford exposure to 45 million square feet of high-quality industrial and logistics assets and a development pipeline of 15 million square feet. IDI has subsequently deployed over US$2 billion into the development of new logistics infrastructure.
Oxford was the cornerstone investor in ESR’s 2019 IPO, the largest Asia-Pacific-focused real estate logistics platform with operations in China, South Korea, Japan, India, Singapore and Australia. In total, Oxford has invested over CAD$1 billion of equity into the ESR platform to help fund its growth.
Our US$360 million investment in late 2020 into Lineage Logistics, the world’s largest temperature-controlled logistics provider, was part of our strategy to capitalize on the increasing demand for cold-storage infrastructure. During the same year, we acquired a 15-acre site in Heathrow, London with plans to redevelop the site to provide a market-leading, purpose-built prime logistics space. In 2021, we formed a joint venture partnership to acquire and develop one of the UK’s largest logistics sites, with a development pipeline of up to 8 million square feet and a new strategic rail interchange
Since the 2021 acquisition of M7 Real Estate, Oxford has leveraged the M7 infrastructure and strategically expanded its European I&L deployment, with the portfolio now boasting exposure to six key markets across Europe – UK, France, Germany, the Netherlands, Denmark and Spain – and across the supply chain catering to a region of 300m+ consumers; bulk distribution, urban infill and retail warehousing. The income streams are well diversified with over 100 occupiers and there is also significant opportunity to drive further value through tailored capex and leasing strategies to modernise the properties and improve occupancy. M7’s current AUM is about €6.9 billion with ambitions to grow it to €12 billion in the next two years, through a combination of Oxford balance sheet deployment and growth of third-party capital management. M7’s management team strengthens our collective global expertise in considering future investment into best-in-class logistics platforms.
Our Canadian industrial and logistics business currently comprises over 15 million square feet and CAD$3.8 billion of assets under management, with a development pipeline of up to 6 million square feet in four high growth areas. We continue to innovate, developing the first multi-storey facility in Canada and are currently doing a speculative development which incorporates solar into the base building infrastructure.
We believe the long-term outlook for the US industrial market is favourable, so to complement the US$3.5 billion acquisition of IDI Logistics, we’ve continued our expansion into the U.S. market through a joint venture with EverWest Real Estate Investors where Oxford has acquired and developed about US$1 billion of infill, small bay properties across the U.S. Additionally, we have diversified the portfolio by investing in over US$456 million of debt backed by U.S. industrial assets. Our ability to invest in debt unlocks access to transactions and deals outside of just equity participation.
We put sustainability at the fore of our portfolio. We have partnered with SSE Energy Solutions for a major electric vehicle charging network across the UK, ensuring 20 of our retail warehousing parks across the UK will have ultra-rapid charging capabilities. A 1.5 million square feet ground up development in Canada incorporates solar panels into the base building infrastructure, enabling occupiers to access clean energy from the day they move in. We have transformed a previously contaminated infill site to create a master planned business park, with amenities and green space.
Today, Oxford and its portfolio companies now manage CAD$87 billion of assets with over a third of Oxford’s capital invested in logistics, warehousing and digital commerce strategies across North America, Europe and Asia-Pacific.
