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 60MW of additional energy capacity in the area is expected to be accessible from 2025, enabling an expansion in the data centre usage of the scheme.

The asset has been certified BREEAM In-Use “Very Good”, with identified initiatives to reach “Excellent” by 2024. Further sustainability initiatives include the installation of solar panels and of heat pumps recycling waste heat from the printing premises back into the building, with the potential to also recycle waste heat from the data centre operations.

Andreas Norberg, Managing Director and Head of Nordics Real Estate at Barings, said: “Vanda 3 is well positioned as an income-producing asset, boasting significant potential for both last-mile logistics and as a data centre. With excellent transport links, a strong and diverse mix of tenants and uses, and good sustainability credentials, Vanda 3 is a strong addition to our Nordics portfolio as part of our European core strategy. Our ambition is to further strengthen its dominant market position and we are happy that we have been able to retain Brunswick as our manager for the asset.”

Gunther Deutsch, Managing Director and Head of European Real Estate Transactions at Barings, said: “An impressive core plus asset already, we plan to further improve on Vanda 3’s mix of uses and its ESG credentials. Barings is in a strong position to make the most of opportunities across Europe thanks to our on-the-ground expertise, global insights, and substantial liquidity. We will be uncompromising in the assets we acquire, with a particular focus on properties in prime locations that are priced accurately amid the economic context, and we are particularly keen to explore joint ventures and individual opportunities in logistics, residential and offices in markets such as the Nordics, the UK, France, Germany, Italy, Spain and the Netherlands.”

David Hävermark, Partner at Brunswick Real Estate, said: “We are very pleased with our achievements in Vanda 3 during a fairly short period of time, not least on the energy side where the environmental footprint of the property will be reduced significantly. There is however a lot more value to be created and we now look forward to continue developing the property together with Barings.”

Partha Sarathy, Head of Asset Management at Pictet said: “We are pleased with the sale of this outstanding property to Barings. Following a successful repositioning and a secured income profile with excellent ESG credentials, this unique asset offers great potential for a long-term capital investor.”

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 $349+ 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 June 30, 2022