Fund manager Clarion Partners Europe has bought three distribution warehouses in Widnes totalling 708,000 sq ft on behalf of a commingled fund client.
The newly built facilities were purchased for around £90m from KKR Real Estate Partners Europe II Fund and Mirastar, KKR Real Estate’s industrial and logistics platform in Europe.
The investment marks Clarion Partners Europe’s second venture in the UK this year. All of the properties have EPC A and BREEAM Excellent sustainability ratings.
The warehouses were built in two development phases last year. The first phase comprises a single-tenant 394,970 sq ft property. It is let to Supply Chain Coordination, which manages the NHS supply chain operations and is wholly owned by the Secretary of State for Health and Social Care.
The second phase totals 312,990 sq ft across two facilities. The larger 258,534 sq ft warehouse is let to third-party logistics operator Kammac. The remaining 54,456 sq ft space is vacant but Clarion said there is “strong interest” from several potential occupiers.
Matthew Tatlock, vice-president of Clarion Partners Europe, said: “Widnes, being a prime logistics destination, enjoys robust occupier demand and offers the advantage of proximity to two major regional metropolitan areas in the UK. This favourable location has limited availability and a muted development pipeline, creating an environment for future rental growth.
Rory Buck, managing director of Clarion Partners Europe, said: “We believe the UK logistics market currently represents an attractive investment opportunity. We have significant firepower to deploy into the market and as we expand our portfolio, our focus remains 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 Gerald Eve and Goodwin Procter. The seller was advised by DTRE, CBRE, Clifford Chance and Osborne Clarke.
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