Barings Agrees Forward Purchase for Logistics Portfolio in Sweden for C. €211 Million
Oct 21, 2021
On completion, the portfolio will comprise six assets totaling 128,000 sqm of Grade A space
Barings, one of the world’s largest diversified real estate investment managers, has agreed to the off-market forward purchase of a portfolio of logistics assets in Sweden from Skanska, one of the world’s leading construction and development companies, for c. €211 million.
The portfolio comprises six assets due for completion in 2022 and 2023. The first two assets are located in Helsingborg and are currently under construction, representing a total value of c. €111 million, while the remaining four assets represent an additional c. €100 million and will be located in Stockholm, Gothenburg and Malmö. Set to deliver more than 128,000 sq m of Grade modern A logistics space to the market, all six assets will be completed to the highest specification and will include a number of key 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 “GreenBuilding” certification.
Located in key logistics markets in Sweden – Gothenburg, Helsingborg, Malmö and northern Stockholm – the completed assets will be supported by a compelling supply/demand dynamic and situated within the Nordic Trade Triangle; a geographic area served by the main transport routes that link Stockholm, Oslo, Helsinki, and Copenhagen together into a coherent Nordic logistics network.
The portfolio will add significant scale to Barings Nordic region logistics footprint. It directly meets its objective to acquire best-in-class space with high sustainability credentials and long-term growth potential.
Nick Pink, Head of Europe Real Estate Portfolio Management, said: “To have sourced and executed this off-market transaction is a strong endorsement of the depth of our platform in the Nordics, particularly at a time when the logistics market in this region has been experiencing a sustained period of significant growth, driven by the globalization of e-commerce and increasing urbanization. Sweden has in particular been characterised by its low supply of Grade A logistics space.”
Gunther Deutsch, Managing Director, Head of Real Estate Transactions – Europe and Managing Director Germany at Barings, added: “Given the planned high specification of portfolio, alongside its compelling range of locations, we look forward to leveraging the growing occupier demand for modern logistics facilities to realise our business plan and generate long-term income.”
Tali Robinson/Polly Warrack/Henry Adefope (SEC Newgate)
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.
Barings is a $387+ 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. Learn more at www.barings.com.
*Assets under management as of September 30, 2021
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