Three of Barings’ flagship European funds, comprising of both core and value-add real estate investment, were the highest performers among their peer groups, with two recognised as ‘Real Estate Sector Leaders’ across all four of the below categories:

• Regional Sector Leader Europe
• Regional Non-Listed Sector Leader Europe
• Global Non-Listed Sector Leader
• Global Sector Leader

The GRESB Real Estate Assessment is the global standard for ESG benchmarking and reporting on material issues for listed property companies, private property funds, developers and investors that invest directly in real estate. GRESB Rating is calculated relative to the global performance of reporting entities, where five stars is the highest rating and recognition for being an industry leader.

Barings European Core Property Fund, which has been participating in GRESB for seven years, earned five out of a maximum of five green stars with a score of 93 out of 100. The Fund was ranked first out of its 15 peers and has been recognised as global and regional ‘Real Estate Sector Leader’. The largest improvements were observed in the data performance sections. Energy, greenhouse gas emissions, water and waste categories all saw an increase in scores from the previous year. This was primarily due to increased data coverage and asset-level energy efficiency measures including increased on-site renewables. Increases were also observed in the climate risk assessment and building certifications sections.

Barings Real Estate European Value Add I (BREEVA I) fund also achieved five stars with a score of 97 out of 100 points, ranking first out of seven in its peer group. Its successor fund BREEVA II was also ranked first in its peer group of seven, with five stars and an unprecedented score of 99 out of 100. BREEVA II has been recognised as a ‘Real Estate Sector Leader’ for the second year in a row, this time at both global and regional levels.

Barings’ approach to Net Zero Carbon (NZC) was a key contributing factor towards improved ratings. Both BREEVA I and II increased the number of assets that are designed to meet NZC standards for both construction and operation. NZC targets devised for these European funds take into account fund strategy for reducing GHG Scope 1, 2 and 3 emissions, and extend support to tenants and the wider value chain via asset-level initiatives. This approach is expected to enable further performance improvements and will continue to strengthen ESG integration for Barings’ European real estate funds.

Nick Pink, Head of European Real Estate at Barings, said: “Representing both the second year in a row that we have achieved three five-star ratings, as well as an uplift on last year’s strong performance, the latest GRESB scores are a strong endorsement of our team’s data-driven approach and emphasis on sustainability and climate risk impacts in all investment decisions. Over recent years we have built a strong team, led by Kristina Arsenievich, and invested significantly into the performance of our assets and strategies, which means we can face the current uncertain market and changing environmental regulations with confidence.”

Valeria Falcone, Head of European Value-Add Investing at Barings, said: “Creating best-in-class assets through repositioning or speculative development is fundamental to how we create value and a big part of why our value-add strategy continues to be so successful. We are proud of the in-house capabilities that have helped us achieve this recognition for our work to date and that will continue to drive our approach as we deploy the remaining capital of BREEVA II.”

Séverine Maumy-Laffineur, Co-Portfolio Manager of Barings European Core Property Fund, said: “In a challenging market, fundamental signifiers of quality are crucial for investors and this type of recognition demonstrates the quality of not just our assets, but also our boots-on-the-ground approach to asset selection, our asset management capabilities and our research.”

Contacts:
Tali Robinson/Polly Warrack/Ben Monteith (SEC Newgate)
baringsRE@secnewgate.co.uk

Barings Real Estate
Barings Real Estate (BRE) is a part of Barings and 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 linkedin.com/showcase/barings-alternative-investments.

About Barings
Barings is a $347+ 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.

*As of September 30, 2023