Barings Real Estate realizes $18.5 billion of transactions in 2017, including tripled acquisition volumes in Europe
Mar 14, 2018
London, 14 March 2018 – Barings Real Estate, part of Barings LLC, one of the world’s largest diversified real estate investment managers, announces a strong 2017, with $18.5 billion of global transactions – up 21% from $15.3 billion in 2016 – and expectations for an equally active 2018.
An overview of the firm’s $18.5 billion1 of transactions in 2017 include: equity acquisitions and financings totaling $2.9 billion; executing and advising on $3.2 billion of equity disposals; $7.5 billion, or 41% of the total transactions, in real estate debt; and $2.5 billion of global REIT securities under management.
Transaction volumes in Europe, including direct acquisitions and disposals, were more than $2.2 billion (€1.9 billion) in 2017. Acquisition volumes tripled those achieved during 2016, showing continually increasing investor appetite for pan-European investment strategies. Additionally, the team originated $995.4 million (£720.5 million) in core and structured debt investments and, as a result, grew European debt assets under management by 20% to $5.4 billion (2016: €4.5 billion).2
The ongoing performance of Barings’ real estate platform in Europe is driven by a clear focus on pan-European core and value-add strategies, built upon a local, on-the-ground network with a presence in major, strategic regions. The firm’s footprint now includes over 100 employees at offices in 13 European cities, with plans to support this continued growth and further expand its European team in 2018, both by geography and dedicated real estate disciplines.
Highlights across core and value-add transactions, as well as debt finance deals, during 2017 include:
• Record transaction volumes in Germany, having concluded nearly €1 billion of deals, including the acquisitions of Vattenfall in Berlin and Unna in Dortmund, one of the largest logistics assets in Germany.
• Growing footprint in Spain, including the acquisition of four properties across retail and logistics totaling €173.7 million, including the acquisition of Berceo Shopping Centre in Bilbao.
• The acquisition of three properties in Finland across retail, residential and hotels totaling €97.5 million, as well as the successful disposal of a 50% share in Kamppi, a major shopping centre in downtown Helsinki, for €265.5 million.
• Acquisitions completed in all regions, including offices in the U.K. totaling €149.6 million, retail and office properties in Italy totaling €58.4 million, and logistics acquisitions in France.
• Core debt originations of £450 million, included loans secured by the 329,000 square-foot iconic Liver Building in Liverpool, a new 310,000 square-foot Grade A office in Manchester, and the prestigious Café Royal Hotel in Piccadilly with ground floor retail fronting Regent Street in London.
• Structured debt originations of £277 million closed across the U.K., with sectors including London micro living, greater London residential development, pre-let office development, office refurbishment / lease up, and two cross-collateralized student developments.
Barings Real Estate, which has over 200 clients globally and approximately US$49 billion (€40.8 billion)2 of assets under management, is a signatory to the UN’s Principles for Responsible Investment, in furtherance of its long-standing commitment to integrate best practices involving ESG issues into its investment decision-making practices.
Charles Weeks, Head of Real Estate - Europe, said: “2017 was a record year for Barings Real Estate – Europe, with acquisition volumes more than triple 2016 levels and diversified transactions across all geographies, property sectors and risk strategies. This increased activity is a result of our strategy to scale-up our European platform and has enhanced our ability to offer an expanded range of our pan-European investment products to our growing client base. Clients tell us they want specialists: local knowledge combined within a pan-European, global approach to investing, and that is exactly what we now have. More than ever, we are well placed to take advantage of opportunities in the market, apply our best-in-class asset management skills and, in turn, deliver strong returns for our clients. Global expansion continues to be one of our key priorities and, backed by our increased volume of transactions in key regions, demonstrates our ability to provide attractive investment opportunities for our expanding international client base.”
Barings Real Estate is part of Barings LLC, one of the world’s largest diversified real estate investment managers. The group is an active investor in private and public, equity and debt markets, and provides core, value-added, and opportunistic investment and advisory services to institutional and other qualified investors around the globe.
Barings is a $304+ billion* global financial services firm dedicated to meeting the evolving investment and capital needs of our clients. We build lasting partnerships that leverage our distinctive expertise across traditional and alternative asset classes to deliver innovative solutions and exceptional service. Part of MassMutual, Barings maintains a strong global presence with over 1,800 professionals and offices in 16 countries.
1 As at 31 December 2017; Barings Real Estate is the marketing name used to represent the real estate advisory business of Barings LLC and its subsidiaries.
2 As at 31 December 2017.
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