Clarion Partners Europe, a real estate investment fund manager specialising in logistics and industrial assets, has acquired a 208,000ft2 warehouse in Coventry for £28.5m.
Clarion Partners Europe bought the warehouse from BlackRock’s UK Property Fund.
The property has a single tenant, an online pet supply retailer, which has over four years remaining on its 10-year lease. The warehouse is located on Middlemarch Business Park, an established Golden Triangle distribution hub.
The BREEAM ‘Very Good’ certified property is just five kilometres from Coventry city centre, is near to Coventry airport and 85% of the UK’s population is accessible within a 4.5-hour HGV drive time via the nearby M6, M69, M45 and M40 junctions.
The purchase represents the first investment on behalf of Clarion Partners Europe’s core-plus, closed-end UK logistics fund, which last month achieved a final close with £427m of equity commitments.
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.
Matthew Tatlock, vice president of Clarion Partners Europe, said: “This is a rare opportunity to acquire a Grade A logistics property with immediate reversionary potential.”
He added: “The West Midlands is one of our high conviction regions, where strong occupier sentiment is underpinning robust future rental growth prospects.”