Logistics and industrial investment fund manager Clarion Partners Europe has bought two distribution warehouses in Peterborough for £52m from Equites Property Fund, marking its return to the market after seven years.
The investments represent the first by Clarion Partners Europe in the UK since 2016, a market where it has historically had a significant allocation.
The properties are single-let and total 438,444 sq ft. They are located at the Peterborough Gateway industrial park in the East Midlands. Both are 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 10-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 10-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 a 180-acre core logistics hub with more than 4m sq ft of warehousing space, immediately adjacent to Junction 17 of the A1(M) roadway. The wider park’s tenants include Urban Outfitters, Oatly, Lidl and Amazon.
Clarion Partners Europe vice president Matthew Tatlock said: “This was a rare opportunity to acquire two highly reversionary, tenant critical distribution centres, strategically located within two hours’ drive time of the UK’s key metropolitan areas.
“With vacancy rates in the region at near historical lows, and the speculative development pipeline subdued due to ongoing inflationary pressures and rising financing costs, the rental growth story remains highly compelling.”
Clarion Partners Europe managing director Rory Buck said: “We see an attractive entry point back into the market, where we have historically deep exposure and experience.”
ACRE advised Clarion Partners Europe. Cushman & Wakefield acted for the vendor.
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