Clarion Partners Europe has raised €882 million of capital commitments from institutional investors in North America, Europe, and Asia to acquire and develop pan-European logistics assets.
The capital raise creates additional acquisition capacity of up to €1.8 billion, said Clarion Europe.
Alistair Calvert, CEO of Clarion Partners Europe, commented: “The European logistics market is undergoing a rapid repricing fueled by rising interest rates. However, underlying occupier demand, the continued expansion of e-commerce and resulting rental growth all remain strong. We are well-positioned to benefit from these dynamics by scaling in an investment market that has less competition but strong tenant demand. We believe the investment case for logistics, given the recent repricing, is compelling on an absolute and relative basis and expect the changes in the structure of retail sales and in the supply chain will continue to further benefit the sector.
“The Clarion Partners Europe team has been able to consistently identify the sector’s evolving trends and pivot its strategy accordingly. Over more than 16 years, we have invested broadly across Europe, leveraging local origination and asset management expertise. We believe we are creating a sustainable platform that meets the demand of today’s occupier.”
Clarion Partners Europe targets investment opportunities in and around proven European cities and established core logistics markets where there is limited supply, frequently employing a develop-to-own strategy alongside acquiring stabilized assets.
Recent investments include newly built, sustainability certified, Grade-A logistics facilities in France, Netherlands, Germany and Spain, which are leased to a mix of national and international occupiers in the 3PL and aeronautical sectors.
Clarion Partners Europe said it would have the flexibility to invest across the spectrum, from ultra-urban last mile logistics to big-box, single-tenant warehouses, taking advantage of local market dynamics.
Clarion Partners, which owns a majority stake in Clarion Partners Europe, is one of the largest real estate investment managers in the world, with more than $75.9 billion in total assets under management, including an industrial portfolio with more than 900 properties, valued at approximately $39 billion.