Oxford Properties and Logistics Capital Partners have formed a joint venture to acquire and develop the UK’s largest logistics site. 

Oxford and LCP will jointly invest c. £1 billion to bring forward the project over a number of years, with Oxford providing the majority of the capital.

West Midlands Interchange, the 734-acre site near Birmingham, will be a technologically advanced and environmentally sustainable development which meets modern occupiers’ efficient operational and environmental requirements.

Planning consent has already been secured by the vendors, which allows for the delivery of around 8 million sq ft of logistics space.

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.

West Midlands Interchange is expected to generate around £430 million of local economic activity each year, and through the supply chain, create over £900 million of economic activity each year nationally.

James Boadle, Head of Logistics and Residential, Europe at Oxford Properties, said: “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.”

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.”