Barings Extends European Logistics Portfolio With €92 Million Swedish Acquistion
Barings, one of the world’s largest diversified real estate investment managers, announces that it has acquired four logistics assets in Norrköping, Sweden, one of the Nordics’ most important logistics hubs, on behalf of institutional investors, for c. €92 million through a sale and lease back agreement.
The portfolio comprises c. 122,000 sq m of net lettable space and is fully occupied by PostNord TPL AB, a Swedish and Danish government owned third party logistics provider. Two units, representing 75% of the total income, offer prime Grade A space and are let on long, 15 year leases, whilst the remaining two assets are let on terms with 4 years remaining, presenting an potential opportunity to refurbish this space and grow ERV.
Norrköping is the fourth largest metropolitan area in Sweden and is home to the Port of Norrköping. The city, which is located close to Stockholm and other important submarkets, such as Gothenburg and Malmö, also serves as a crossroad for the E22 and E4 motorways with 40% of the population, or 4 million people accessible within 2.5 hours.
Barings manages a portfolio totalling approximately 16,500 sq m in Scandinavia across a range of sectors including offices, retail and residential with approximately 25,000 sq m of space currently under construction in Stockholm and, following this latest acquisition, a 122,000 sq m logistics portfolio. Barings’ investment strategy in the region is focused on logistics investments in the top ten logistics locations in the Nordics; selected office assets with turn around potential in the Nordic capital cities; and high quality residential buildings located in attractive commuter areas near to Stockholm, Copenhagen and Helsinki.
Thorsten Slytå, Managing Director, Head of Scandinavia at Barings, commented: “The Swedish logistics sector continues to present attractive opportunities as ecommerce penetration, which is ahead of southern Europe but behind that of the UK and Germany, continues to grow, with the structural drivers supporting it having further accelerated as a result of the COVID-19 pandemic. This portfolio, which has been acquired for our core strategy, is particularly attractive providing an interesting mix of both predominantly core long lease income and the opportunity to grow income and value in the medium term.”
Gunther Deutsch, Managing Director, Head of Real Estate Transactions – Europe at Barings, added: “This transaction demonstrates that, in spite of COVID-19, Barings continues to be active in the investment market, particularly in the logistics space where we are currently pursuing nine potential transactions. Having invested more than €600 million in logistics across Europe in 2019, this acquisition in Sweden is a great step forward in the region. Building on our existing experience in this area, one of our main focuses in 2020 will be sale and lease back transactions, where we can establish long term relationships with our occupiers. In Sweden, we will continue to explore the logistics, office and residential sectors across the risk spectrum from core to value add.
Barings Real Estate
Barings Real Estate (BRE) offers a broad range of global investment opportunities across the private debt and equity real estate investment markets. BRE invests in all major property sectors and offers a broad 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.
Barings is a $327+ billion* global financial services firm dedicated to meeting the evolving investment and capital needs of our clients and customers. Through active asset management and direct origination, we provide innovative solutions and access to differentiated opportunities across public and private capital markets. A subsidiary of MassMutual, Barings maintains a strong global presence with business and investment professionals located across North America, Europe and Asia Pacific. Learn more, at www.barings.com.
*As of March 31, 2020