Clarion Partners Europe has re-entered the UK warehouse market with the £52m acquisition of two distribution warehouses in Peterborough from Equities Property Fund.

The investments are the first made by Clarion in the UK since 2016, and feature two single-tenant warehouses, which offer 438,444 sq ft of space.

They were constructed at Peterborough Gateway industrial park in 2018 and 2019, with both EPC A and BREEAM ‘Very Good’ certifications.

A 302,723 sq ft unit is let on a 10-year term, with 5.4 years remaining to a wholly owned subsidiary of Danish transport and logistics company DSV A/S, and the smaller 135,721 sq ft warehouse is let on a 10-year term, with 6.3 years remaining, to a subsidiary of Coloplast.

Both leases are subject to upward-only open market rent reviews.

Matthew Tatlock, vice president of Clarion Partners Europe, 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.”

Rory Buck, managing director of Clarion Partners Europe, added: “We see an attractive entry point back into the market, where we have historically deep exposure and experience. This acquisition is fully consistent with our investment strategy of building a portfolio of best-in-class warehouses across Europe that are let to highly credible counterparties, with strong ESG credentials in supply-constrained markets.”

Clarion Partners Europe was advised by ACRE and the vendor was advised by Cushman & Wakefield.

© Eastern Echo (powered by

Sign up to receive our weekly free journal, The Forum here.