CPREX Expands Orlando Footprint with Key Industrial Acquisition

Clarion Partners Real Estate Income Fund Inc. (CPREX) has announced the acquisition of Regional Airport Center II, an 81,762-square-foot industrial building in Orlando, FL. The property is fully leased to 11 tenants, reinforcing CPREX's robust investment in the industrial real estate sector.

Clarion Partners, recognized as the third-largest owner of industrial real estate in the U.S., has been a major player in the industrial and logistics sector for over two decades. This latest acquisition brings the total amount of industrial space owned by CPREX investors to more than 33% of the Fund, and expands Clarion’s U.S. industrial footprint to approximately 256 million square feet.

Brent Jenkins, Managing Director at Clarion, emphasized the strategic significance of the purchase, stating, "The purchase of Regional Airport Center II, well-located approximately five miles west of the Orlando International Airport in the Southeast Orange County submarket, brings Clarion’s overall industrial investment in the broader Orlando market to 29 buildings and over five million square feet." He also noted that Clarion has nearly three million square feet of industrial projects in its development pipeline in the Orlando area.

Clarion Partners operates as part of Franklin Templeton’s alternatives business, which manages approximately $255 billion in assets across various strategies including real estate, private credit, and hedge funds. CPREX aims to offer individual investors access to Clarion’s institutional platform through a transparent structure registered under the Investment Company Act of 1940.

Ali Winrow, CPREX Product Specialist, highlighted the Fund's recent performance and liquidity strategies, pointing out that positive net investor inflows over the past 18 months have bolstered the fund's liquidity. During this period, quarterly tender requests averaged about 1.7% of net asset value (NAV), peaking at 2.9% in the second quarter of 2023, well below the 5% NAV liquidity offered to investors each quarter since the Fund's inception.

CPREX maintains a daily value, supported by one of the industry's most robust valuation policies. Investments in its portfolio are valued by a third-party appraiser monthly and adjusted for income daily, ensuring that the stock price reflects the underlying value of each asset.

This acquisition underscores Clarion Partners' conviction in the industrial sector's potential. For a deeper insight into their investment strategy, view their latest Clarion Calls Market Insights video and read their whitepaper on The Ongoing Outperformance of U.S. Industrial Real Estate.