January 13, 2022

Barings Acquires €40 Million Milan Office Value-add Opportunity

Barings, one of the world’s largest diversified real estate investment managers, on behalf of its value-add real estate fund, BREEVA II, has agreed the acquisition of a c. 12,600 sq m office complex in Milan for €40 million from Deka.

The vacant asset offers significant redevelopment potential and Barings has already identified a range of asset management initiatives to drive value and deliver a Grade A office asset, including the improvement of the building’s ESG credentials and the introduction of retail amenities at the ground floor. The asset also benefits from parking provisions for 136 cars and 16 motorcycles.

Located at Viale Cassala 14/16 in the south-west quadrant of Milan, the asset benefits from excellent connectivity via its proximity to both local and international transport links, with Milan Linate airport less than 30 minutes by car. Further, the asset is well placed to benefit from the favourable occupier dynamics in the city’s office market as more companies look for modern office space outside of the city’s historical centre and CBD.

Marco Corti, Managing Director, Country Head of Italy for Barings, said: This was an attractive opportunity for our strategy to acquire and reposition outdated office stock as Grade A space with market-leading ESG credentials. Milan is a market we know very well and one where we see significant opportunities for value as more occupiers make sustainability a priority and look outside the traditionally prime areas of the city for space.”

Gunther Deutsch, Head of Transactions Europe and Managing Director at Barings, commented: “This was our sixth deal for this strategy in Milan - with three opportunities already realised and sold - and further builds our track record for a hands-on approach to investment and asset management.”

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 www.linkedin.com/showcase/barings-alternative-investments.

About Barings
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