Clarion Partners Europe has bought three distribution warehouses in Widnes, UK on behalf of a commingled fund client.
With a combined area of 708,000 square feet, these newly constructed facilities were purchased from KKR Real Estate Partners Europe II Fund and Mirastar. This is KKR Real Estate’s industrial and logistics platform in Europe.
This investment marks Clarion Partners Europe’s second venture in the UK in 2023. All properties have obtained EPC A and BREEAM Excellent certification sustainability ratings.
Widnes benefits from excellent connectivity to major Northern cities including Manchester and Liverpool through well-developed road links.
The new Widnes warehouses
Phase I comprises a single-tenant 394,970 square foot property. This is let to Supply Chain Coordination Limited. It manages the NHS Supply Chain operations and is wholly owned by the UK’s Secretary of State for Health and Social Care.
Phase II totals 312,990 square feet across two units. The larger 258,534 square foot unit is let to Kammac Limited, a 3PL operator. The remaining 54,456 square foot unit is currently vacant with strong interest from several potential occupiers.
Matthew Tatlock, Vice President, Clarion Partners Europe, says, “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, Clarion Partners Europe, adds, “We believe that the UK logistics market currently represents an attractive investment opportunity. We have significant firepower to deploy into the market. 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 rent levels.”
Clarion Partners Europe was advised by Gerald Eve and Goodwin Procter. The seller was advised by DTRE, CBRE, Clifford Chance and Osborne Clarke
