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Day: 11 January 2024

UK Logistics Fund Raises £427m

Posted on by David Priestman

Clarion Partners Europe, the real estate investment fund manager specialising in logistics and industrial assets, announces that it has held the final closing of its core-plus, closed-end UK logistics fund (“Fund”). Exceeding its capital-raising target, equity commitments totaling £427 million have been secured from a mix of European, North American, and Asian institutions, including investors in Clarion Partner Europe’s previous pan-European logistics strategies. The Fund, with gearing, will provide c. £650 million of investable capital and is now closed to new investors.

The Fund is Clarion Partners Europe’s first to solely focus on the UK, a market it recently re-entered following a seven-year break. It will target a portfolio of high-quality, ESG-compliant logistics assets underpinned by strong rental growth fundamentals in established UK logistics hubs. With the flexibility to invest across the asset class, from last mile logistics to big box single tenant warehouses, the Fund will target both best-in-class assets whilst also seeking to create value through investing in underperforming assets and selective development opportunities.

The Fund will leverage Clarion Partners Europe’s management’s 24-year investment and asset management history, which includes over £3 billion of logistics asset transactions across the UK and Europe, as well as the broader expertise of Clarion Partners, which has a 40-year track record in real estate investment management and a $45 billion, 1000+ property global industrial portfolio.

Alistair Calvert, CEO of Clarion Partners Europe, commented: “This is an opportune time to be scaling up in the UK, a market with strong long-term property fundamentals and where we have deep experience, and which is witnessing a pricing adjustment the likes of which hasn’t been seen in at least the last 30 years. We focus on delivering strong investor returns by identifying the industrial sector’s evolving trends and tailoring our strategy accordingly. Having amassed a portfolio of highly sustainable product that meets the demand of today’s occupier on the Continent, we are convinced we have the local, on-the-ground origination and asset management expertise to replicate this in the UK.”

Rory Buck, Head of Investment at Clarion Partners Europe, added: “Significant rental growth in recent years means many existing properties have baked in reversion and lease rent review mechanics, which provides investors the ability to capture this regardless of lease length. Additionally, our specialisation in the industrial sector allows us to enhance certainty of execution to potential sellers which contributed to completing two transactions in the UK last year.”

UK Logistics Fund Raises £427m

Posted on by Keith McKinley

Clarion Partners Europe, the real estate investment fund manager specialising in logistics and industrial assets, announces that it has held the final closing of its core-plus, closed-end UK logistics fund (“Fund”). Exceeding its capital-raising target, equity commitments totaling £427 million have been secured from a mix of European, North American, and Asian institutions, including investors in Clarion Partner Europe’s previous pan-European logistics strategies. The Fund, with gearing, will provide c. £650 million of investable capital and is now closed to new investors.

The Fund is Clarion Partners Europe’s first to solely focus on the UK, a market it recently re-entered following a seven-year break. It will target a portfolio of high-quality, ESG-compliant logistics assets underpinned by strong rental growth fundamentals in established UK logistics hubs. With the flexibility to invest across the asset class, from last mile logistics to big box single tenant warehouses, the Fund will target both best-in-class assets whilst also seeking to create value through investing in underperforming assets and selective development opportunities.

The Fund will leverage Clarion Partners Europe’s management’s 24-year investment and asset management history, which includes over £3 billion of logistics asset transactions across the UK and Europe, as well as the broader expertise of Clarion Partners, which has a 40-year track record in real estate investment management and a $45 billion, 1000+ property global industrial portfolio.

Alistair Calvert, CEO of Clarion Partners Europe, commented: “This is an opportune time to be scaling up in the UK, a market with strong long-term property fundamentals and where we have deep experience, and which is witnessing a pricing adjustment the likes of which hasn’t been seen in at least the last 30 years. We focus on delivering strong investor returns by identifying the industrial sector’s evolving trends and tailoring our strategy accordingly. Having amassed a portfolio of highly sustainable product that meets the demand of today’s occupier on the Continent, we are convinced we have the local, on-the-ground origination and asset management expertise to replicate this in the UK.”

Rory Buck, Head of Investment at Clarion Partners Europe, added: “Significant rental growth in recent years means many existing properties have baked in reversion and lease rent review mechanics, which provides investors the ability to capture this regardless of lease length. Additionally, our specialisation in the industrial sector allows us to enhance certainty of execution to potential sellers which contributed to completing two transactions in the UK last year.”

The Freight Crime Supply Chain

Posted on by David Priestman

Surprisingly, this shadow supply chain uses all of the same components as the legitimate one, from route planning to warehousing, with stolen goods marketed and sold using legitimate platforms to unsuspecting buyers. Freight insurance provider TT Club is promoting awareness of this supply chain ‘Black hole’.

Much freight crime is perpetrated by organised crime with profit, similar to commercial businesses as the ultimate aim. The process of storage, transport, distribution and marketing of stolen goods often shadow those of legitimate supply chains with criminals acquiring sophisticated logistics skills. Their knowledge assists them in targeting shipments at a multitude of points; from truck hijackings to pilfering items from unsecured warehouses. Needless to say such theft not only results in significant financial losses but also disrupts the flow of goods, leading to delayed deliveries and dissatisfied customers.

“At TT we are striving to highlight the responsibility that landlords in particular have to properly vet tenants of storage facilities and how they can prevent their properties being used to warehouse stolen goods” says Josh Finch.

“In a recent operation, police in the UK discovered a warehouse, at a location in Bradford that held hundreds of pallets of stolen goods. With the assistance of the National Vehicle Crime Intelligence Service (NaVCIS) the goods found were linked to known cargo theft incidents which spanned the previous six years and amounted to several million pounds in value,” continues Finch.
“The warehouse itself was an unassuming commercial unit, which blended seamlessly with other legitimate businesses and exemplifies the duty landlords have to ensure that the sites they own and lease are not being used by their tenants for illegal purposes.”

TT Club is endeavouring to pinpoint the warning signs, and the nature of due diligence that is essential in preventing such properties from being exploited by criminals. Such measures include:

• Background checks to scrutinize the business operations, financial stability, and track record of potential tenants
• Inspection of premises regularly to ensure they are being used for legitimate purposes
• Monitoring tenant activity, employing modern monitoring technologies, such as security cameras and access control systems
• Collaborating with law enforcement at a local level to share information and report any suspicious activity promptly
• Review lease agreements to include clauses specifying the permissible uses of the property and outline the consequences for illegal activities
• Engagement of professional services such as security experts with experience in identifying and preventing criminal activities

Increasing evidence from law enforcement agencies is confirming that a shadow supply chain operates alongside the legitimate transport of goods, using all of the same components from route planning to warehousing, with stolen goods marketed and sold using legitimate platforms to unsuspecting buyers.

“As TT helps operators to navigate the complex world of cargo theft and freight crime, it becomes increasingly clear that shedding light on this black hole requires a collective effort from all stakeholders in the supply chain, from law enforcement agencies to warehouse landlords. Only through such collaboration can we hope to mitigate this ongoing threat and safeguard the integrity of the supply chain,” concludes Finch.

The Freight Crime Supply Chain

Posted on by Keith McKinley

Surprisingly, this shadow supply chain uses all of the same components as the legitimate one, from route planning to warehousing, with stolen goods marketed and sold using legitimate platforms to unsuspecting buyers. Freight insurance provider TT Club is promoting awareness of this supply chain ‘Black hole’.

Much freight crime is perpetrated by organised crime with profit, similar to commercial businesses as the ultimate aim. The process of storage, transport, distribution and marketing of stolen goods often shadow those of legitimate supply chains with criminals acquiring sophisticated logistics skills. Their knowledge assists them in targeting shipments at a multitude of points; from truck hijackings to pilfering items from unsecured warehouses. Needless to say such theft not only results in significant financial losses but also disrupts the flow of goods, leading to delayed deliveries and dissatisfied customers.

“At TT we are striving to highlight the responsibility that landlords in particular have to properly vet tenants of storage facilities and how they can prevent their properties being used to warehouse stolen goods” says Josh Finch.

“In a recent operation, police in the UK discovered a warehouse, at a location in Bradford that held hundreds of pallets of stolen goods. With the assistance of the National Vehicle Crime Intelligence Service (NaVCIS) the goods found were linked to known cargo theft incidents which spanned the previous six years and amounted to several million pounds in value,” continues Finch.
“The warehouse itself was an unassuming commercial unit, which blended seamlessly with other legitimate businesses and exemplifies the duty landlords have to ensure that the sites they own and lease are not being used by their tenants for illegal purposes.”

TT Club is endeavouring to pinpoint the warning signs, and the nature of due diligence that is essential in preventing such properties from being exploited by criminals. Such measures include:

• Background checks to scrutinize the business operations, financial stability, and track record of potential tenants
• Inspection of premises regularly to ensure they are being used for legitimate purposes
• Monitoring tenant activity, employing modern monitoring technologies, such as security cameras and access control systems
• Collaborating with law enforcement at a local level to share information and report any suspicious activity promptly
• Review lease agreements to include clauses specifying the permissible uses of the property and outline the consequences for illegal activities
• Engagement of professional services such as security experts with experience in identifying and preventing criminal activities

Increasing evidence from law enforcement agencies is confirming that a shadow supply chain operates alongside the legitimate transport of goods, using all of the same components from route planning to warehousing, with stolen goods marketed and sold using legitimate platforms to unsuspecting buyers.

“As TT helps operators to navigate the complex world of cargo theft and freight crime, it becomes increasingly clear that shedding light on this black hole requires a collective effort from all stakeholders in the supply chain, from law enforcement agencies to warehouse landlords. Only through such collaboration can we hope to mitigate this ongoing threat and safeguard the integrity of the supply chain,” concludes Finch.

Weserport Rail Loading Facility

Posted on by David Priestman

For more than 25 years, Rhenus Weserport Bremen has stood for expert and professional transshipment of various goods and materials. As a member of the Rhenus Group, the port agency has previously focused on transferring cargo from seagoing vessels onto trucks and inland waterway vessels.

But for its recently forged partnership with Nabaltec AG, Rhenus Weserport is now substantially extending its existing railway line. The rail loading facility in Germany’s southernmost seaport will be used for the shipment of imported aluminum hydroxide and aluminum oxide.

Nabaltec AG supplies growing markets all over the world with eco-friendly flame retardant fillers and specialty alumina. Due to high energy costs, and given the trend towards de-industrialization, which is expected in Germany as a result, the company is looking to expand its ability to purchase aluminum hydroxide and aluminum oxide, two materials which are of vital importance for its product portfolio, from smelters in Europe, in Brazil and – depending on cost and quality – all over the world.

The materials are shipped to Germany by sea, as German ports offer cost advantages for Nabaltec over Dutch and Belgian ports and storage of the materials in Bremen ensures a reliable supply.
“The decision to route the aluminum hydroxide and aluminum oxide through Rhenus Weserport was made because of its existing railway line, which is perfectly suited for a project-based extension. Other crucial factors included the direct link to oceangoing traffic and the existing loading and storage facilities. The materials are shipped by rail from Bremen right to us in Bavaria. We expect to see cost benefits due to the extension of our supplier portfolio, which will allow us to continue offering our products on a competitive basis,” explains Johannes Heckmann, the CEO of Nabaltec AG.
Aluminum hydroxide is a flame retardant and a key component in plastic cables and other metallic conductors. Aluminum oxide is used in the production of technical ceramics and in the refractory and polishing industries.

Rhenus Weserport has already started shipping goods for Nabaltec. By extending its facilities for the shipment of cargo by rail, the port services provider is positioning itself for the future: “This new area of business is an important development for us. Our first rail loading facility will allow us to unlock new markets and potential relationships,” explains Rudolf Egbert, Managing Director of Rhenus Weserport. “This creates new opportunities for us, particularly in a time when Germany is de-industrializing.”

Until the new fully automated rail loading system in Terminal 4 is completed, Nabaltec is temporarily using Terminal 2, in Bremen’s industrial harbor, for the shipment of aluminum hydroxide. The licensing procedure for the alterations to Terminal 4, as well as the construction process, are fully underway. The new system is scheduled to go into operation at the end of 2024. With the extensions to the terminal and the automated rail loading system, Nabaltec will be able to meet its target of shipping 70,000 to 140,000 tons of aluminum hydroxide and aluminum oxide per year.
The contractual agreement between Rhenus Weserport and Nabaltec has been concluded for a term of 10 years, with an option to extend the term of the agreement.

Weserport Rail Loading Facility

Posted on by Keith McKinley

For more than 25 years, Rhenus Weserport Bremen has stood for expert and professional transshipment of various goods and materials. As a member of the Rhenus Group, the port agency has previously focused on transferring cargo from seagoing vessels onto trucks and inland waterway vessels.

But for its recently forged partnership with Nabaltec AG, Rhenus Weserport is now substantially extending its existing railway line. The rail loading facility in Germany’s southernmost seaport will be used for the shipment of imported aluminum hydroxide and aluminum oxide.

Nabaltec AG supplies growing markets all over the world with eco-friendly flame retardant fillers and specialty alumina. Due to high energy costs, and given the trend towards de-industrialization, which is expected in Germany as a result, the company is looking to expand its ability to purchase aluminum hydroxide and aluminum oxide, two materials which are of vital importance for its product portfolio, from smelters in Europe, in Brazil and – depending on cost and quality – all over the world.

The materials are shipped to Germany by sea, as German ports offer cost advantages for Nabaltec over Dutch and Belgian ports and storage of the materials in Bremen ensures a reliable supply.
“The decision to route the aluminum hydroxide and aluminum oxide through Rhenus Weserport was made because of its existing railway line, which is perfectly suited for a project-based extension. Other crucial factors included the direct link to oceangoing traffic and the existing loading and storage facilities. The materials are shipped by rail from Bremen right to us in Bavaria. We expect to see cost benefits due to the extension of our supplier portfolio, which will allow us to continue offering our products on a competitive basis,” explains Johannes Heckmann, the CEO of Nabaltec AG.
Aluminum hydroxide is a flame retardant and a key component in plastic cables and other metallic conductors. Aluminum oxide is used in the production of technical ceramics and in the refractory and polishing industries.

Rhenus Weserport has already started shipping goods for Nabaltec. By extending its facilities for the shipment of cargo by rail, the port services provider is positioning itself for the future: “This new area of business is an important development for us. Our first rail loading facility will allow us to unlock new markets and potential relationships,” explains Rudolf Egbert, Managing Director of Rhenus Weserport. “This creates new opportunities for us, particularly in a time when Germany is de-industrializing.”

Until the new fully automated rail loading system in Terminal 4 is completed, Nabaltec is temporarily using Terminal 2, in Bremen’s industrial harbor, for the shipment of aluminum hydroxide. The licensing procedure for the alterations to Terminal 4, as well as the construction process, are fully underway. The new system is scheduled to go into operation at the end of 2024. With the extensions to the terminal and the automated rail loading system, Nabaltec will be able to meet its target of shipping 70,000 to 140,000 tons of aluminum hydroxide and aluminum oxide per year.
The contractual agreement between Rhenus Weserport and Nabaltec has been concluded for a term of 10 years, with an option to extend the term of the agreement.

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