Clarion Partners Europe Re-enters UK Warehouse Market with £52 Million Double Acquisition
Clarion Partners Europe (Clarion), the real estate investment fund manager specialising in logistics and industrial assets, has acquired two modern, institutional quality distribution warehouses, totalling 438,444 sq ft, in Peterborough, UK, for £52 million, from Equites Property Fund. The investments represent the first by Clarion Partners Europe in the UK since 2016, a market where it has historically had a significant allocation.
Located on Peterborough Gateway industrial park in the East Midlands, the single-tenant properties, constructed in 2018 and 2019, are both EPC A rated and have achieved a BREEAM “Very Good" certification.
The larger of the two properties totals 302,723 sq ft and is let on ten-year term, with 5.4 years remaining, to a wholly owned subsidiary of DSV A/S, a Danish transport and logistics company listed on the Danish Stock Exchange.
The second property totals 135,721 sq ft and is let on a ten-year term, with 6.3 years remaining, to a subsidiary of Coloplast, a Danish medical device developer and manufacturer listed on the Danish Stock Exchange. Both leases are subject to upward only open market rent reviews.
Peterborough Gateway is an 180-acre core logistics hub providing over 4 million sq ft of modern warehouse space, immediately adjacent to Junction 17 of the A1(M) roadway, with 85% of the UK population within 4.5 hour HGV drivetime. The wider park is occupied by a diverse mix of national and international mix occupiers, including Urban Outfitters, Oatly, Lidl, and Amazon.
According to CBRE, the UK logistics market will experience continued occupational demand in 2023 above long-term averages, reflecting ongoing supply chain configuration. The lack of supply of Grade-A space is especially acute, with only two months of ready-to-occupy space available at current take up levels.