Clarion pays £115m for Frontier Park Blackburn

Developed by the Issa brothers’ property arm Monte Blackburn, the logistics park acquired by the European sector specialist amounts to 954,000 sq ft and currently boasts 94% occupancy.

Real estate investment fund manager Clarion Partners Europe said that the transaction underscores its conviction in North West market, where rental growth is forecast by Savills to outperform the rest of the UK market.

CPE specialises in European logistics and industrial assets and has acquired the Blackburn estate on behalf of its managed funds.

Completed in phases between 2019 and 2022, Frontier Park Blackburn totals 18 individual units, ranging from 6,100 sq ft to 161,000 sq ft, each featuring modern, generic specifications and an EPC rating of A or B.

The scheme is located two miles east of Blackburn city centre and sits adjacent to Junction 6 of the M65. It is currently 94% occupied by nine tenants.

Since March 2023, Clarion Partners has invested £400m+ in the UK across 10 modern “mission-critical” logistics assets in key locations, including Widnes and Haydock.

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Neli Mihova, vice president of CPE, said: “This was a rare opportunity to acquire a modern logistics scheme in the North West, below replacement cost. The region has been characterised by a shortage of modern stock and a muted development pipeline, underpinning the asset’s attractive reversion potential.”

The buyer’s managing director Rory Buck added: “Despite continued market volatility, we have deployed a further £115m into the UK, demonstrating both our deal execution capabilities and the attractive opportunities that the current market dislocation is throwing up.

“This acquisition reflects our continued focus on modern logistics assets benefitting from supply constraints within UK logistics corridors.”

Tenants to have committed to Frontier Park Blackburn, Monte’s flagship scheme, include Tek-Dry, MDA, and Royal Sanders. There is Hampton by Hilton hotel, as well as a petrol station and F&B including KFC and Starbucks.

Clarion was advised by DLA Piper, Hollis, and Atlas Real Estate, among others.