Clarion Partners Europe has purchased a 208,000 sq ft warehouse in Coventry from BlackRock’s UK Property Fund for £28.25m.
The BREEAM Very Good-rated property is located on Middlemarch Business Park and is let to an online pet supplies and accessories retailer on a 10-year lease, with more than four years remaining.
The acquisition is the first investment made 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 targeting 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. The West Midlands is one of our high conviction regions, where strong occupier sentiment is underpinning robust future rental growth prospects.”
Rory Buck, managing director of Clarion Partners Europe, added: “We are delighted to have completed this transaction as part of our new UK-only logistics fund strategy. With significant capital to deploy into the UK market our focus will remain on acquiring newly developed, sustainable and high-quality logistics assets leased to strong counterparties in locations benefiting from limited supply and upward pressure on rents.”
Clarion Partners Europe was advised by Montagu Evans and Gowling WLG. BlackRock was advised by Fulwell Capital and CMS.
