Clarion Partners Europe, renowned for its focus on logistics and industrial assets, has successfully completed the purchase of a 208,000 square foot warehouse in Coventry, amounting to £28.5 million. This acquisition from BlackRock’s UK Property Fund marks a significant addition to Clarion’s portfolio, spotlighting the firm’s strategic investment in the UK logistics sector.

Occupied by an online pet supply retailer under a lease with over four years remaining of its initial 10-year term, the warehouse stands in the Middlemarch Business Park. This location is part of the prestigious Golden Triangle, a key distribution hub within the UK logistics network. Its strategic position, certified with a BREEAM ‘Very Good’ rating, offers optimal connectivity, being just five kilometres from Coventry city centre and in proximity to Coventry airport. Furthermore, its accessibility to a vast majority of the UK’s population within a 4.5-hour HGV drive, via major motorways including the M6, M69, M45, and M40, enhances its logistical appeal.

This investment introduces Clarion Partners Europe’s core-plus, closed-end UK logistics fund, which recently closed with £427m in equity commitments. As the firm’s inaugural fund dedicated exclusively to the UK market—re-entering after a seven-year hiatus—it aims to assemble a collection of high-quality, environmentally and socially responsible logistics assets located in key UK logistics hubs, driven by the prospect of strong rental growth.

Matthew Tatlock, Vice President of Clarion Partners Europe, highlighted the acquisition as a strategic move within the West Midlands, a region identified for its robust rental growth potential and strong occupier demand. “Acquiring this Grade A logistics property presents an exceptional chance to tap into the reversionary potential offered by the thriving West Midlands market,” he remarked, signalling optimism for Clarion’s future investment trajectory in the UK logistics landscape.