Barings Sells Two Core Logistics Assets in Italy
Barings, one of the world’s largest diversified real estate investment managers, has sold, through an Italian real estate fund managed by Savills IM SGR, two prime logistics assets near Milan to Kryalos SGR in an off-market transaction.
Located in Cavenago and Cambiago, both Grade A warehouses are fully let with long-term leases to an Italian-listed company, and span approximately 66,100 sq m and 24,100 sq m respectively. The assets are in a prime location within the core Milanese logistics market, along the A4 motorway that serves as the most important route for the Italian logistics sector.
Barings acquired both warehouses in 2019, as part of a core strategy on behalf of a separate account for Asian clients. At the end of 2021, the logistics sector was Italy’s highest asset class by transaction volumes, with €2.9 billion transacted (+66% year-on-year) and a take-up of some 2.5 million sq m (+9% year-on-year).
Marco Corti, managing director and Italian country head at Barings Real Estate, said: “Having executed our business plan against these assets and secured very pleasing returns for our investors, completing this sale marks the latest success for the local team. With investment appetite for the logistics sector still strong, as confirmed by Q1 2022 figures, we are keen to explore further value-add and core/core+ opportunities in the Italian market.”
Gunther Deutsch, managing director and head of European real estate transactions at Barings Real Estate, said: “Logistics remains a sought-after sector for our investors due to the strength of its fundamentals, including a strong imbalance between supply and demand, low vacancy, and still compelling ecommerce sales. Having completed this sale, and with a significant pipeline of new projects in Italy and across Europe in the logistics, residential and office sectors, we will continue to work with partners, including developers in joint ventures, across our preferred jurisdictions of the Nordics, the Netherlands, Germany, Italy, France, Spain and the UK.”
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Tali Robinson/Polly Warrack/Ben Monteith (SEC Newgate)
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.
Barings is a $371+ 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 March 31, 2022