Clarion Partners Europe, the real estate investment fund manager specialising in logistics and industrial assets, has agreed a £80 million deal to buy a pair of 'Golden Triangle' logistics parks from EPISO 5, a fund managed by Tristan Capital Partners.
The parks, in Redditch and Kettering, total 558,000 square feet of industrial accommodation and are both BREEAM Very Good certified. They were constructed in 2019 and are fully let to nine tenants.
Clarion's Redditch scheme, Velocity 42, sits in the West Midlands and is comprises four units, ranging from 55,000 square feet to 93,000 square feet. It is leased to occupiers in the clothing, pet supply and freight services sectors. Both the M40 and M6 motorways are within a 15-minutes drive away.
Crossfire 14, the smaller estate in Kettering, East Midlands, lies close to the A14, connecting to the M1, A1(M) and M6. The five units range from 25,000 square feet to 100,000 square feet and are occupied by tenants in the third party logistics, food production, packaging and charity sectors.
Clarion's £80 million deal is the second on behalf of its UK-only logistics fund, which announced a final close with £427 million of equity commitments in January. The fund's first deal was in the same month, with the £28 million purchase of a Coventry warehouse from BlackRock’s UK Property Fund.
The firm's UK-only logistics fund is targeting a portfolio of high-quality, ESG-compliant logistics assets underpinned by strong rental growth fundamentals in established UK logistics hubs.
Matthew Tatlock, director of 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 of Clarion Partners Europe, added: "We are pleased to announce the closing of the second deal into our new UK logistics fund, securing two key distribution parks in the Golden Triangle. 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 Tristan Capital was advised by DTRE and CMS.