Barings Real Estate Debt Agrees €225 Million of Loans for Irish Logistics
Barings, one of the world’s largest diversified real estate investment managers, has agreed two loans to KKR and Palm Capital in Ireland for a total of circa. €225 million. These loans mark Barings’s debut into the Ireland logistics market as a lender.
Barings has provided a five-year €188.5 million senior secured, floating rate loan to finance the acquisition of a portfolio of income-producing industrial assets in Ireland. The portfolio comprises a total of 73 properties, which are located primarily in Greater Dublin and Naas Enterprise Business Park, and is 97% let to a range of occupiers, including investment-grade rating tenants.
In addition, Barings has agreed a €36.7 million floating rate, first mortgage loan, to fund the acquisition of a portfolio of six last mile, light industrial properties in Dublin, Ireland. With an initial three-year term, plus two one-year extension options, the debt is secured against a portfolio comprising a total area of 345,000 sq ft, which is 95% occupied with a WALT (weighted average lease term) of 7.5 years.
KKR is a leading global investment firm that manages multiple alternative asset classes, including private equity, credit and real assets, with $252 billion under management. Palm Logistics is an affiliate of Palm Capital, a pan-European real estate private equity specialist with extensive experience in the urban and last-mile logistics sector across Ireland, Scandinavia and Spain.
Jose Garcia Cedrun, Director of European Real Estate Debt at Barings, commented: “We are pleased to have supported two high calibre sponsors in KKR and Palm Capital with their growth in the Irish logistics market, where there exists a favourable supply / demand imbalance underpinned by extremely low vacancy.”
Sam Mellor, Head of Europe & Asia Pacific Real Estate Debt at Barings, commented: “These loans mark an important milestone for the expansion of our European real estate debt platform as we take on new geographies that allow us to leverage our research capabilities and platform.”
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. Follow us on LinkedIn at linkedin.com/showcase/barings-alternative-investments.
Barings is a $391+ 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 December 31, 2021