Forward purchased from NCC, which is one of the leading construction companies in the Nordics and will develop the space on a speculative basis, the asset will comprise a total of 34,000 sq m of high-quality space with a target of a BREEAM Excellent certification. It will aim to offer modern technical specifications, including 29 loading docks, good outside manoeuvring space and excellent floor-to-ceiling heights, and will offer the potential of being divided into up to four units. It is due for completion in 2024.

Gothenburg is considered to be one of the best logistics markets in Sweden as a result of its strategic location and strong infrastructure. It is home to the largest container port in the Nordics and is the main international gateway for foreign trade in Sweden. The asset will be well located in close proximity to both the port and local highways.

Separately, Barings has agreed two pre-lets on behalf of its second value-add real estate fund, BREEVA II, in Sweden. In Gothenberg, Barings has agreed an 11-year lease with Pmflex Group Northern Europe AB, covering a total of 14,255 sq m, in Bäckebol 107:11, Some office space and 5,500 sq m of vacant warehouse space remains available in the asset. At Kamaxeln 3 in Helsingborg, Barings has agreed a ten-year lease with NTEX Inrikes AB for the entirety of the 18,200 sq m available. These latest pre-lets in the c. 128,000 sq m portfolio it acquired in 2021 bring the total area pre-leased to 60%.

Upon completion, the portfolio of Grade A logistics assets will include a number of sustainability features, including solar panels for green energy generation and green concrete. All assets will have a green profile and meet the requirements for a ‘Green Building’ certification. Barings was advised by Savills on both lettings.

James Whittaker, Managing Director and Co-Portfolio Manager for Barings European Core Property Fund at Barings, said: “These transactions collectively represent how attractive such prime assets are in the Nordics market. We’re working to bring best-in-class space to a supply-constrained markets and, just as we’re seeing with our existing portfolio, we expect this newly forward purchased asset will attract significant leasing interest. NCC is one of the leading construction companies in the Nordics and we are pleased to be working with them to deliver this development.”

Gunther Deutsch, Head of Transactions Europe and Managing Director at Barings, commented: “This off-market acquisition was a compelling opportunity to increase our exposure to an attractive market with a trusted partner. Following swiftly on from successful pre-leasing activity across other Nordic logistics assets, this forward purchase is a strong sign of our confidence and commitment in this sector. Having already acquired six assets worth about €300m in 2021, we are still keen to buy more in strong Nordic locations and across a range of deal structures, including speculative developments, partnering with developers on joint ventures, sale and lease back transactions or portfolios ranging from core to value add.”

Barings Real Estate
Barings Real Estate (BRE) offers a broad range of global investment opportunities across the private debt and equity investment markets. BRE invests in all major property sectors and offers an expansive range of financing solutions to real estate borrowers. Follow us on LinkedIn at www.linkedin.com/showcase/barings-alternative-investments.

About Barings
Barings is a $391+ billion* global investment manager sourcing differentiated opportunities and building long-term portfolios across public and private fixed income, real estate, and specialist equity markets. With investment professionals based in North America, Europe and Asia Pacific, the firm, a subsidiary of MassMutual, aims to serve its clients, communities and employees, and is committed to sustainable practices and responsible investment.

*Assets under management as of December 31, 2021