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Clarion Partners
Alistair Calvert
+44 20 7647 7500
Transaction is first on behalf of Clarion’s UK-only logistics Fund, which recently announced a final close with £427 million of equity commitments
NEW YORK, January 18, 2024 – Clarion Partners Europe, the real estate investment fund manager specialising in logistics and industrial assets, has completed the acquisition of a modern warehouse in Coventry, from BlackRock’s UK Property Fund, for £28.25 million. It represents the first investment on behalf of Clarion Partners Europe’s core-plus, closed-end UK logistics fund (the “Fund”), which last month achieved a final close with £427 million of equity commitments.
Located on Middlemarch Business Park, an established Golden Triangle distribution hub, the 208,000 sq ft single tenant property is leased to a leading online pet supplies and accessories retailer, on a 10-year lease, with over four years remaining.
The BREEAM Very Good certified property is just five kilometres from Coventry city centre and benefits from excellent regional and national infrastructure connectivity, adjacent to Coventry airport and with 85% of the UK’s population accessible within a 4.5-hour HGV drive time via the nearby M6, M69, M45 and M40 junctions.
The Fund is Clarion Partners Europe’s first to solely focus on the UK, a market it recently re-entered following a seven-year break. It will target a portfolio of high-quality, ESG-compliant logistics assets underpinned by strong rental growth fundamentals in established UK logistics hubs. With the flexibility to invest across the asset class, from last mile logistics to big box single tenant warehouses, the Fund will target both best-in-class assets whilst also seeking to create value through investing in underperforming assets and selective development opportunities.
Matthew Tatlock, Vice President, Clarion Partners Europe, commented: “This is a rare opportunity to acquire a Grade A logistics property with immediate reversionary potential. The West Midlands is one of our high conviction regions, where strong occupier sentiment is underpinning robust future rental growth prospects.”
Rory Buck, Managing Director, Clarion Partners Europe, added: “We are delighted to have completed this transaction as part of our new UK-only logistics fund strategy. With significant capital to deploy into the UK market our focus will remain on acquiring newly developed, sustainable and high-quality logistics assets leased to strong counterparties in locations benefiting from limited supply and upward pressure on rents.”
Clarion Partners Europe was advised by Montagu Evans and Gowling WLG. The seller was advised by Fulwell Capital and CMS.
About Clarion Partners Europe
Clarion Partners Europe Ltd. is focused on investing in logistics and industrial properties located across Germany, the Netherlands, France, Spain, Italy and other European countries. Clarion Partners LLC (Clarion Partners), an SEC registered investment adviser with FCA-authorized and FINRA member affiliates, has been a leading U.S. real estate investment manager for over 40 years. Headquartered in New York, the firm maintains strategically located offices across the United States and Europe, and owns a majority stake of Clarion Partners Europe. With $79 billion in total assets under management, Clarion Partners offers a broad range of real estate strategies across the risk/return spectrum to approximately 500 domestic and international institutional investors. Clarion Partners and Clarion Partners Europe collectively manage a 1000+ industrial property portfolio in the U.S. and Europe consisting of more than 242 million square feet. More information about the firm is available at www.clarioneurope.com and www.clarionpartners.com
About Franklin Templeton
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