Clarion Partners Europe Expands UK Portfolio with Acquisition of Two Logistics Parks in Redditch and Kettering for £80 Million

Clarion Partners Europe Expands UK Portfolio with £80 Million Acquisition of Two Logistics Parks

Real estate investment fund manager Clarion Partners Europe has made a significant move in the UK market by acquiring two logistics parks in Redditch and Kettering for a total of £80 million (€94 million). The properties were purchased from EPISO 5, a fund managed by Tristan Capital Partners.

This acquisition marks the second major investment for Clarion’s dedicated UK logistics fund, which recently secured £427 million (€501 million) in funding. Earlier this year, the company also acquired a modern warehouse in Coventry for £28 million (€33 million) from BlackRock’s UK Property Fund.

The two logistics parks, totaling over 51,840 square meters, were built in 2019 and currently have a 100% occupancy rate with nine tenants. Both properties have achieved a “Very Good” rating under the BREEAM sustainability certification.

The larger logistics park in Redditch offers four units ranging from 5,110 to 8,640 square meters and serves tenants from various sectors such as clothing, pet supplies, and freight services. This location provides easy access to major transportation routes like the M40 and M6 within a 15-minute drive.

The smaller logistics park in Kettering features five units ranging from 2,322 to 9,290 square meters and accommodates tenants from industries such as 3PL, food production, packaging, and charities. It has direct access to the A14 motorway, allowing convenient connections to key national routes like the M1, A1, and M6 within a 30-minute drive.

Matthew Tatlock, director at Clarion Partners Europe, stated, “This acquisition aligns with our strategy of acquiring modern, under-rented assets in prime locations with the potential for rental growth. We are focused on building a portfolio of assets with strong ESG credentials for sustainable future growth.”

Rory Buck, managing director at Clarion Partners Europe, added, “The UK real estate market continues to offer significant opportunities, driven by strong fundamentals and recent pricing adjustments due to changes in interest rates. We are excited about the growth potential in the UK.”

Clarion Partners Europe was advised by Gerald Eve and Gowling WLG, while DTRE and CMS provided advisory services to Tristan Capital on the transaction.