March 09, 2023

Barings Agrees Upsize Lease at Core-Plus Logistics and Data Centre Asset in Sweden

Barings, one of the world’s largest diversified real estate investment managers, has agreed a ten-year lease with Premo at Vanda 3 in Stockholm, Sweden, a core-plus asset acquired in September 2022 on behalf of a pan-European strategy to acquire core real estate.

Premo, a specialist daily newspaper and e-delivery company in the greater Stockholm, has agreed a lease to upsize its existing space at Vanda 3 by a further 2,000 sqm, meaning it will occupy a total of 2 555 sqm in the logistics and data centre development. Premo is the distribution channel for the main business media in the greater Stockholm metropolitan area, and its expansion at Vanda 3 will see more than 60 new jobs created in the area.

The letting is part of a larger development project in and around Vanda 3, with further opportunities to develop logistics, warehouses or data centres that feature strong ESG credentials. Vanda 3 has undergone an extensive energy saving project, including new heat pumps for recycling excess heat which annually saves up to 14 Gigawatt hours, which corresponds to 54% of heating and cooling for the property.

Vanda 3 is a multi-tenanted property with a mix of uses, including warehousing and logistics, data centre operations, printing and offices. Situated next to a major motorway, the E4, the asset is also in close proximity to Sweden’s largest international airport, Arlanda, and a regional airport, Bromma. Its transport connections are set to improve further from the completion of the Stockholm Bypass in 2030, with an interchange right next to the property.

As well as being in an ideal location for last-mile logistics serving Stockholm, the asset is in one of the three main areas in the Swedish capital identified by the municipality to develop data centres. An additional energy capacity is expected to be accessible in the area from 2026, which further enhances the potential for data centres, as a complement to existing warehouse and logistics developments.

The asset has been certified BREEAM In-Use “Very Good”, with identified initiatives to reach “Excellent” by 2024.

Jan Persson, CEO at Premo, Pressens Morgontjänst, said: "We are looking forward to our new premises and are happy to develop our collaboration in Vanda, which is a strategically very good location for us. Premo started its operations here in 1994 and will now be able to increase operations with up to 60 workplaces.”

Kristina Johnson, Head of Sweden Real Estate Asset Management at Barings, said: “Our development of Vanda is progressing according to plan, as evidenced in Premo’s decision to invest in its future here and expand its operations. We look forward to continuing to improve the asset, including its environmental credentials, for the benefit of both existing as well as new tenants, while contributing positively to economic outcomes in the area around the asset.”

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 www.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.

*Assets under management as of 31 December, 2022