Clarion Partners Europe has held the final closing of its core-plus, closed-end UK logistics fund, exceeding its capital-raising target to raise £427m from a mix of European, North American and Asian institutions.
The fund, which is Clarion Partners Europe’s first to solely focus on the UK, aims to take advantage of “pricing adjustments” in the market and with gearing will provide around £650m of investable capital.
It will target a portfolio of high-quality, ESG-compliant logistics assets underpinned by strong rental growth fundamentals in established UK logistics hubs.
Alistair Calvert (pictured), CEO of Clarion Partners Europe, said: “This is an opportune time to be scaling up in the UK, a market with strong long-term property fundamentals and where we have deep experience, and which is witnessing a pricing adjustment the likes of which hasn’t been seen in at least the last 30 years.
“We focus on delivering strong investor returns by identifying the industrial sector’s evolving trends and tailoring our strategy accordingly. Having amassed a portfolio of highly sustainable product that meets the demand of today’s occupier on the continent, we are convinced we have the local, on-the-ground origination and asset management expertise to replicate this in the UK.”
Rory Buck, head of investment at Clarion Partners Europe, added: “Significant rental growth in recent years means many existing properties have baked in reversion and lease rent review mechanics, which provides investors the ability to capture this regardless of lease length. Additionally, our specialisation in the industrial sector allows us to enhance certainty of execution to potential sellers which contributed to completing two transactions in the UK last year.”
