Clarion Partners Europe has completed the acquisition of a modern warehouse in Coventry, from BlackRock’s UK Property Fund, for £28.25 mln (€33 mln).
It 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 £427 mln of equity commitments.
Located on Middlemarch Business Park, an established Golden Triangle distribution hub, the 208,000 sq ft (19,300 m2) 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.
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 while 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.'
Clarion Partners Europe was advised by Montagu Evans and Gowling WLG. The seller was advised by Fulwell Capital and CMS.
