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Pension funds in multi-billion dollar logistics play

Two of Canada’s biggest pension funds announced a joint investment in Atlanta-based warehouse developer IDI Logistics.

Ivanhoe Cambridge Inc. sold half of its $350 billion stake in the company to Oxford Properties Group.
Ivanhoé Cambridge, a real estate subsidiary of Caisse de dépôt et placement du Québec and Oxford Properties, the real estate arm of OMERS, signed a 50-50 joint venture partnership agreement to invest in 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.

MARIO MORRONI

“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 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 by CBRE National Partners.

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