Clarion Partners Europe has invested £52m (€59m) to buy two warehouses in Peterborough, a deal that represents the firm’s transaction in the UK since 2016.
The logistics and industrial real estate investment fund manager said it bought the assets located in the Peterborough Gateway industrial park in the East Midlands from Equites Property Fund.
One asset, comprising 302,723sqft of space, is let to a subsidiary of Danish transport and logistics company DSV. The second asset, a 135,721sqft peoperty, is let to a subsidiary of Danish medical device developer Coloplast.
Matthew Tatlock, VP at Clarion Partners Europe, said: “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, MD at Clarion Partners Europe, said: “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.”
To read the latest edition of the latest IPE Real Assets magazine click here.
