Clarion Partners Real Estate Income Fund Inc. (CPREX) has made a significant addition to its industrial real estate portfolio with the acquisition of Regional Airport Center II, an 81,762-square-foot industrial building in Orlando, Florida. This property, fully leased to 11 tenants, not only marks CPREX's foray into the Orlando market but also underscores its commitment to the industrial and logistics sector, where it has been a key player for over 20 years. Industrial properties now account for more than 33% of CPREX's investment portfolio, with this acquisition expanding Clarion's U.S. industrial footprint to approximately 256 million square feet, solidifying its rank as the third-largest industrial real estate owner in the country.
The strategic location of Regional Airport Center II, situated five miles west of Orlando International Airport, enhances Clarion's presence in the Southeast Orange County submarket. Brent Jenkins, Managing Director at Clarion Partners, highlighted how this acquisition increases Clarion's industrial holdings in the Orlando area to 29 buildings and over five million square feet, with an additional three million square feet in development. This move is part of CPREX's strategy to leverage its institutional platform to offer individual investors access to high-quality real estate investments through a regulated and transparent structure.
Ali Winrow, Product Specialist, pointed out the fund's success in attracting positive net investor inflows over the past 18 months, enabling it to pursue new equity and debt investments. CPREX's dedication to transparency and investor confidence is reflected in its rigorous valuation policy, with each investment valued monthly by an independent appraiser and adjusted daily for income. This ensures the stock price accurately mirrors the underlying asset values.
Clarion Partners' confidence in the industrial sector is backed by its analysis of market trends, including the ongoing outperformance of U.S. industrial real estate. As part of Franklin Templeton's alternatives business, managing around $255 billion in assets, CPREX benefits from extensive resources and expertise. This acquisition not only diversifies CPREX's portfolio but also highlights its capability to identify lucrative opportunities in a competitive market.
Investors should note the inherent risks of real estate investments, such as market volatility and economic fluctuations. CPREX offers a quarterly repurchase option for up to 5% of its shares at net asset value, providing a measure of liquidity. The purchase of Regional Airport Center II aligns with industry trends favoring industrial and logistics properties, driven by e-commerce growth and evolving supply chain needs, positioning CPREX to meet future demands effectively.
