Clarion buys Dutch warehouses for 50m euros
Clarion Partners Europe, a logistics and industrial-focused real estate investment manager, has acquired two fully let warehouses in North Brabant for a combined €50m. The properties, located in Eindhoven and Tilburg, are generating income from day one and are situated in two of the Netherlands’ most critically undersupplied distribution hubs.
In a market where prime vacancy rates are at or near historic lows, and new supply faces structural headwinds, the deals represent a disciplined bet on a tight market getting tighter still. They are affected by the Netherlands’ ongoing nitrogen emissions crisis, which has significantly slowed new development permitting across the country, and North Brabant is one of the most directly affected regions.
The Eindhoven asset is located on the Business Park Nieuw Acht / GDC Eindhoven Acht business park and was completed in 2020. This property totals approximately 17,000 m² of warehouse and office accommodation and is fully let to a leading Dutch fresh-produce wholesaler, holding a BREEAM In-Use Very Good certification.
In Tilburg, Clarion Partners Europe has added a Grade A warehouse constructed in 2019, totalling 16,226 m², with BREEAM Very Good certification, LED lighting, and rooftop photovoltaic panels, and is fully leased. The building forms part of the core Brabant logistics corridor, with immediate access to the A58, A65, A67, and A2 motorways.
Neli Mihova, Vice President, Clarion Partners Europe, said: “These transactions strongly align with our strategy of acquiring generic assets in core logistics markets with strong ESG specifications, which generate robust day-one income whilst offering reversionary downside protection.”
Rory Buck, Managing Director, Clarion Partners Europe, added: “The Netherlands remains one of our high conviction markets. With higher financing and construction costs weighing on new development, vacancy rates for prime assets in many of Europe’s leading distribution hubs are at or close to historic lows.”
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The Dutch government’s establishment of six new 1km buffer zones around vulnerable nature areas in Noord-Brabant has compounding already lengthy permit timelines for new distribution centre construction. For existing, fully let, BREEAM-certified warehouses in this corridor, the regulatory ceiling on new stock is a structural tailwind for rental growth and a direct support for the reversionary upside.
Clarion Partners Europe invests in logistics, industrial, and long-income sale and leaseback properties across Europe, including Germany, the Netherlands, France, Spain, Italy, and other markets. It is majority-owned by Clarion Partners, LLC, an SEC-registered investment adviser headquartered in New York managing approximately €66bn in total assets on behalf of around 500 institutional investors globally.
As the regulatory pressure on new supply in North Brabant continues to grow, existing warehouses like the ones acquired by Clarion Partners Europe are likely to become even more valuable.
The company’s strategy of acquiring generic assets in core logistics markets with strong ESG specifications seems to be paying off, at least for now, given the current market conditions.
The acquisition was advised by Loyens & Loeff, Grant Thornton, and Arcadis for the Eindhoven asset, and by Houthoff, Arcadis, and Cushman & Wakefield for the Tilburg asset. The seller was advised by NL Real Estate | Knight Frank for the Eindhoven transaction, similar to other recent deals, such as the sale of Andaz Amsterdam to First Sponsor.
