Real estate investment fund manager Clarion Partners Europe is continuing its expansion in the UK with the purchase of two logistics parks in Redditch and Kettering for £80 mln (€94 mln).
The properties were acquired from EPISO 5, a fund managed by Tristan Capital Partners.
This is the second major investment for Clarion’s dedicated UK logistics fund, which recently secured £427 mln (€501 mln) in funding. In January, it picked up a modern warehouse in Coventry, from BlackRock’s UK Property Fund, for £28 mln (€33 mln).
The two logistics parks, totaling over 51,840 m2, were built in 2019 and boast a 100% occupancy rate with nine tenants. Both properties have achieved a “Very Good” rating under the BREEAM sustainability certification.
The larger park in Redditch offers four units ranging from 5,110 to 8,640 m2. It caters to tenants in various sectors, including clothing, pet supplies, and freight services. This location benefits from easy access to both the M40 (leading to London and the South-East) and the M6 (leading to the South-West) within a 15-minute drive.
The smaller park in Kettering features five units ranging from 2,322 to 9,290 m2. It houses tenants in diverse industries such as 3PL (third-party logistics), food production, packaging, and charities. This location boasts direct access to the A14 motorway, providing convenient connections to major national routes like the M1, A1, and M6 within a 30-minute drive.
Matthew Tatlock, director, Clarion Partners Europe, commented: ‘This acquisition aligns with our thesis of buying modern, under-rented assets in prime locations, with access to near-term reversion. Leveraging our strong partnerships, we continue to build a portfolio of assets with robust ESG credentials, optimally positioned for future rental growth.’
Rory Buck, managing director, Clarion Partners Europe, added: ‘The UK remains a market where we see significant opportunity, given both the strong underlying fundamentals and the recent repricing due to a change in interest rates over the last 24 months.’
Clarion Partners Europe was advised by Gerald Eve and Gowling WLG, while DTRE and CMS advised Tristan Capital.