Clarion buys Midlands logistics parks

Fund manager Clarion Partners Europe has bought two logistics parks in Golden Triangle distribution locations for £80m from a fund managed by Tristan Capital Partners. The logistics parks, in Redditch and Kettering, total 558,000 sq ft and were previously owned by Tristan’s EPISO 5 fund. They are certified as BREEAM Very Good and were built in 2019. Combined, the estates are fully let to nine occupiers. The deal is the second that Clarion has made on behalf of its UK-only logistics fund, which recently held a final close with £427m of equity commitments. It targets a portfolio of ESG-compliant logistics assets underpinned by strong rental growth fundamentals in established UK logistics hubs. The larger estate, in Redditch, the West Midlands, comprises four facilities ranging from 55,000 to 93,000 sq ft and is leased to occupiers in the clothing, pet supply and freight services sectors. The smaller estate in Kettering, the East Midlands, consists of five spaces ranging from 25,000 to 100,000 sq ft and are occupied by tenants in the 3PL, food production, packaging and charity sectors. Matthew Tatlock, director at Clarion Partners Europe, said: “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, said: “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’s UK-only logistics fund closed its first acquisition in January, when it bought a warehouse in Coventry from BlackRock’s UK Property Fund for £28m. Gerald Eve and Gowling WLG advised Clarion, while DTRE and CMS acted for Tristan Capital. Photo © Marcin Jozwiak/Unsplash