The scheme will consist of c. 85,000 sq m of best-in-class logistics space with a flexible layout and will target high sustainability credentials, including BREEAM Excellent and carbon reduction certificates. Located in Santa Iria de Azoia, an area with a lack of Grade A logistics supply in the Portuguese capital, Barings will develop the scheme together with one of Europe’s leading logistics real estate developers as development manager.

The site is in the Lisbon urban area, which is seeing growing logistics demand as evidenced by almost 0% vacancy in A-grade logistic space. The scheme will benefit from access to the main distribution roads, such as the A1 and the A30, and has strong public transport links with Lisbon accessible in c. 25 minutes by train.

Since BREEVA II closed in February 2022 at its hard-cap of €850 million, it has retained significant dry powder with which to invest into the current heavily corrected market, targeting primarily logistics and living real estate in strategic markets across Europe.

José Carlos Torres, Managing Director and Head of Iberian Real Estate at Barings, said: “We continue to take advantage selectively of the opportunities that the current market environment offers, and this deal reflects the attractiveness both of the Iberian peninsula and logistics real estate where we see positive supply and demand conditions. This project is particularly attractive as it´s located in an urban location within the city of Lisbon so it can supply the market with last mile space as well as typical logistics space with unparalleled access to the main distribution roads combined with excellent private and public transport links. This transaction demonstrates the kind of opportunities, particularly in the logistics and living sectors, that we are actively exploring in Spain and Portugal on behalf of BREEVA II and other investment vehicles managed by Barings.”

Gunther Deutsch, Managing Director and Head of European Real Estate Transactions at Barings, said: “Logistics remains one of our preferred investment classes across Europe in 2024, where our local expertise and global insights come together in a way that enables us to identify value. We continue seeking joint venture development projects and partners, forward transactions or investing in stabilised assets with value-add potential. This is the case across our preferred sectors, logistics and living such as student housing and BTR, in our preferred European markets – including Spain, Portugal, Germany, the UK, France, Italy, the Nordics and the Netherlands.”

Contacts
Polly Warrack/Ben Monteith (SEC Newgate)
baringsRE@secnewgate.co.uk

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 $381+ 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 December 31, 2023