Barings makes first investment in Sweden residential market with €128 million acquisition
Feb 12, 2019
LONDON, (February 13, 2019) – Barings Real Estate, part of Barings LLC, one of the world’s largest diversified real estate investment managers, today announced that it has secured six high quality residential buildings in Stockholm through a forward commitment. The buildings will be developed over five phases and will comprise 610 apartments for rent in Bromsten, in the city of Stockholm, where there is currently a chronic undersupply of residential accommodation for rent. The investment is part of our pan European core investment strategy on behalf of institutional investors. The seller is a joint venture between Slättö VII and listed property company Fastpartner.
The six buildings comprise a mixture of one, two, and three-bedroom units, with an average size of 40 sqm. The apartments will be built to a high quality, with on-site car parking for approximately 300 vehicles. Excellent public transportation can easily be reached by the commuter train and bus transfer hub at Spånga Station, which is less than 1 km from the properties. Construction is expected to commence in early 2019 with completion in 2022.
The development partner is Slättö, a long-term owner, manager and developer of residential property in the growth markets of Sweden. Slättö has a reputation for developing responsible, sustainable and attractive residential property for communal living.
“This is a rare opportunity to access the Stockholm residential rental market with new purpose built buildings in a strong location. Aside our usual search profile for office, logistics and retail, residential and student housing are major themes for Barings in 2019, across the Nordics. Forward commitments represent an attractive means of securing good quality stock. This latest transaction continues to broaden Barings presence in the Nordics”, said Staffan Unge, Barings Managing Director and Real Estate Country Head for Sweden.
Barings Alternative Investments (BAI), part of Barings LLC, is a 460+ associate team located across 11 countries that manages $48.5 billion* in client capital. BAI seeks differentiated sources of returns by incorporating decades of investment experience in alternative assets offering investors access to a diverse range of opportunities across private equity, real assets, asset-based investments and the four quadrants of real estate. We serve as a trusted partner to clients, leveraging our global presence and robust origination capabilities to identify the most attractive risk-adjusted return opportunities. As a leading global real estate investor and asset manager, the Barings Real Estate team offers a broad range of investment opportunities across the public and private debt and equity markets, investing across property sectors with a focus on global relative value and trend-backed preferred strategies.
Barings is a $303+ billion* global financial services firm dedicated to meeting the evolving investment and capital needs of our clients and customers. Through active asset management and direct origination, we provide innovative solutions and access to differentiated opportunities across public and private capital markets. A subsidiary of MassMutual, Barings maintains a strong global presence with business and investment professionals located across North America, Europe and Asia Pacific.
*As of December 31, 2018.
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