Ivanhoé, Oxford form partnership to jointly own IDI Logistics

Ivanhoé Cambridge and Oxford Properties have formed a 50:50 joint partnership to invest in IDI Logistics, an Atlanta-based developer and manager of logistics real estate.

Terms weren’t disclosed. Bloomberg reported the deal’s value at US$3.5 billion ($4.7 billion).

Ivanhoé closed the initial acquisition in November. The seller was Brookfield Asset Management.

Established in 1989, IDI Logistics has developed more than 100 business parks and 750 warehouses totalling over 200 million square feet in North America.

Ivanhoé is the real estate arm of Caisse de dépôt et placement du Québec, while Oxford is the real estate arm of Ontario Municipal Employees Retirement System.

PRESS RELEASE

Ivanhoé Cambridge and Oxford Properties form partnership to invest in IDI Logistics

MONTREAL and TORONTO, Jan. 30, 2019 /PRNewswire/ – Global real estate investors Ivanhoé Cambridge, a real estate subsidiary of Caisse de dépôt et placement du Québec and Oxford Properties, the real estate arm of OMERS, announce that they have signed a 50-50 joint venture partnership agreement to invest in recently acquired U.S. logistics company IDI Logistics and all of its assets from a Brookfield-sponsored real estate fund for an undisclosed amount. The initial acquisition by Ivanhoé Cambridge from Brookfield was completed on November 30, 2018.

“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, said 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. In just over two years, we have grown our overall committed investments in the industrial and logistics sector from more than C$2B to more than C$9B.”

“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,” commented Kevin Egan, Head of New York and US Investments at Oxford Properties. “Furthermore, it highlights the evolution and growth of our US business which now actively invests and manages across the office, retail, multifamily, logistics and credit sectors with approximately US$15.1B of assets under management. We’re excited to partner with Ivanhoé Cambridge and look forward to driving the next phase of success for IDI Logistics.”

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 thirty-year track record of success.”

Based in Atlanta, IDI Logistics is one of the leading developers and managers of logistics real estate in the U.S. and is a fully integrated logistics platform with a long track record of sourcing acquisitions, dispositions and development opportunities. In its 30-year history, IDI Logistics has developed more than 100 world-class business parks and 750 warehouses totaling over 200 million sf throughout North America.

The joint venture will own the operating and development company, a portfolio of 111 quality operating assets covering 31 million sf, 35 development projects covering 16 million sf and IDI’s quality landbank of 33 land parcels allowing for an additional build-out potential of 17 million s.f.

Ivanhoé Cambridge and Oxford intend to contribute their collective experience and resources to further the strategic positioning and growth of IDI, a high-quality logistics platform. The partnership will benefit from the strong support of IDI’s national management team and its 70+ employees across 6 regional offices in the U.S. to make IDI a continued 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.

About Ivanhoé Cambridge
Ivanhoé Cambridge develops and invests in high-quality real estate properties, projects and companies that are shaping the urban fabric in dynamic cities around the world. It does so responsibly, with a long-term view to generate optimal, risk-adjusted returns. Ivanhoé Cambridge is committed to creating living spaces that foster the well-being of people and communities, while reducing its environmental footprint. Vertically integrated in Canada, Ivanhoé Cambridge invests internationally alongside strategic partners and major real estate funds that are leaders in their markets. Through subsidiaries and partnerships, the Company holds interests in more than 1,000 buildings, primarily in the residential, office, retail, industrial and logistics sectors. Ivanhoé Cambridge held more than C$60 billion in assets as at June 30, 2018, and is a real estate subsidiary of the Caisse de dépôt et placement du Québec (cdpq.com), one of Canada’s leading institutional fund managers. For more information: ivanhoecambridge.com.

About Oxford Properties Group
Oxford Properties Group connects people to exceptional places, and is the owner, developer and manager of some of the world’s best real estate assets. Established in 1960, it manages over C$58 billion of assets across the globe on behalf of its co-owners and investment partners. Oxford’s portfolio encompasses office, retail, industrial, hotels and multifamily residential and spans 100 million square feet in global gateway cities across four continents. A highly disciplined and thematic investor, Oxford invests in properties, portfolios, development sites, debt, securities and platform opportunities across the risk-reward spectrum. With regional head offices in Toronto, New York, London, Luxembourg, Singapore and Sydney, its long-term approach to real estate investment aligns Oxford’s interests to its customers and the communities in which it operates. Oxford is the global real estate arm of OMERS, the AAA credit rated defined benefit pension plan for Ontario’s municipal employees.

For more information on Oxford, visit www.oxfordproperties.com

About IDI
IDI Logistics is one of the leading developers and managers of logistics real estate in the U.S. and is a fully integrated logistics platform with a long track record of speculative development, build-to-suits and value-add acquisitions. In its 30-year history, IDI Logistics has developed more than 100 world-class business parks and 750 warehouses totaling over 200 million sf throughout North America.