Investors confident of continued industrial rent increases
Two investment deals reported today indicate that investors are confident of continued industrial rent increases either through asset management or natural rent growth despite increasing supply levels.

By Liza Helps, Property Editor, Logistics Matters
CLARION PARTNERS Europe has paid £115 million for Monte Blackburn’s 954,000 ft2 Frontier Park Blackburn industrial and logistics scheme in the Northwest where according to Savills research rental growth is forecast to outperform the rest of the UK, and Valor Real Estate Partners has acquired an ‘under-rented’ 1980s multi let trading estate in Park Royal where it intends to carry out renovation on the empty units to drive the ‘rental tone’ on the estate.
Valor secured Westwood Trading Estate which is 70% occupied by a range of predominantly 3PL and distribution businesses. Valor Vice President Timour Wielemans said: “The estate is under-rented, which offers the opportunity to capture significant reversion over our hold period.”
In the Northwest Clarion is looking to push rents on through lease renewals. Frontier Park Blackburn wascompleted in phases between 2019 and 2022. It totals 18 individual units, ranging from 6,100 ft2 to 161,000 ft2, each featuring modern, generic specifications and an EPC rating of A or B. It is currently 94% occupied by nine tenants.
Clarion Partners Europe Vice President Neli Mihova, 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.”
Clarion Partners Europe was advised by DLA Piper, Hollis, and Atlas Real Estate, among others.
Valor was advised by Simmons and CBRE.