June 01, 2021

Barings’ Value Add Fund Sells Ontígola Logistics Near Madrid for €40.6 Million

Barings, the global investment management firm and one of the world’s largest diversified real estate investment managers, announces that it has sold Ontígola Logistics, comprising two warehouse assets near Madrid, for €40.6 million on behalf of its value add real estate fund, BREEVA I. 

Barings acquired the land for the development in May 2019 and subsequently entered into a development agreement with developer, Logistik Services, for the construction of the project which totals c. 49,000 sq m split across two units. Just days after the completion of construction, a nine-year lease was signed with Iskaypet, a market leader in pet food stores in Spain, for the entire space. 

The asset is located in Ontígola, a prime area for national logistics near Madrid, connecting the city to Spain’s southern seaports. The A-4 corridor, where Ontígola is situated is favoured for its ability to serve the whole Iberian Peninsula.

Valeria Falcone, Managing Director & Head of Value Add Investing Europe at Barings, said: “This is the fifth sale we have made on behalf of BREEVA I, as we realise our investments following the close of the fund and the gradual completion of our business plans.  The sale adds to the fund’s strong performance to-date, which continues to outperform industry benchmarks. We remain very active in the investment market, with the strong returns generated by this project endorsing our conviction in European logistics, which continues to play an important part of our broader strategy.” 

Adolfo Favieres, Managing Director & Country Head Real Estate – Iberia, added: “Ontigola Logistics is a great example of our ability to create value by using our local knowledge and market leading asset management expertise. The scheme’s strategic location in Madrid’s south logistics corridor, as well as its high-quality design, meant we were able to secure an occupier shortly after the development completed. The speed at which we developed, leased and sold this asset is testament to the skills we have at Barings and our team on the ground.”

Pérez-Llorca and Arcadis acted as legal and technical advisors on the sale.

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. BRE also specializes in providing government and government-sponsored entity lending products through our wholly owned subsidiary, Barings Multifamily Capital. Follow us on LinkedIn at www.linkedin.com/showcase/barings-alternative-investments.

About Barings

Barings is a $326+ 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 March 31, 2021