Clarion Partners Europe back in the UK with €59m investment

Real estate investment manager Clarion Partners Europe has purchased two distribution warehouses in the UK totalling 40,733 m2 for £52 mln (€59 mln) from Johannesburg-listed REIT Equites Property Fund.

The investments are the first by Clarion Partners Europe in the UK since 2016.

Located on Peterborough Gateway industrial park in the East Midlands, the single-tenant properties, built in 2018 and 2019, are both EPC A rated and have received a BREEAM 'Very Good' certification.

The first totals 28,124 m2 and is leased to a fully owned subsidiary of Danish transport and logistics firm DSV for a duration of 10 years with 5.4 years left.

The second property has a total area of 12,609 m2 and is leased to a subsidiary of Danish medical device developer and manufacturer Coloplast for 10 years, with 6.3 years remaining.

Both leases are subject to upward only open market rent reviews.

Peterborough Gateway is an 73-hectare logistics hub with over 370,000 m2 of modern warehouse space just off junction 17 of the A1 motorway, with 85% of the UK population within a 4.5 hour drive by truck.

A mix of national and international mix occupiers, including Urban Outfitters, Oatly, Lidl, and Amazon, are based on the location.

Matthew Tatlock, VP, Clarion Partners Europe, commented: ‘This was a rare opportunity to acquire two highly reversionary, tenant critical distribution centres, strategically located within two hours' drive time of the UK's key metropolitan areas. With vacancy rates in the region at near historical lows, and the speculative development pipeline subdued due to ongoing inflationary pressures and rising financing costs, the rental growth story remains highly compelling.’

Rory Buck, managing director, Clarion Partners Europe, added: ‘We see an attractive entry point back into the market, where we have historically deep exposure and experience. This acquisition is fully consistent with our investment strategy of building a portfolio of best-in-class warehouses across Europe that are let to highly credible counterparties, with strong ESG credentials in supply constrained markets.’

Acre advised Clarion Partners Europe, while the vendor was advised by Cushman & Wakefield.


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