Barings, one of the world’s largest diversified real estate investment managers, announces, that it has acquired two logistics properties in Sarstedt, south of Hanover, Germany, from Hanover-based Bertram Projektmanagement GmbH on behalf of a European core strategy. 

One of the assets is an existing logistics property with a rental area of c. 30,000 sq m, which is fully let to a leading drugstore operator. The second is a c. 28,000 sq m logistics asset that is being developed by Bertram Bau und Invest GmbH. Goldbeck will act as the general contractor for the property and completion is due in the third quarter of 2021.

The c. 108,000 sq m site benefits from excellent accessibility, with a direct connection to the A7 motorway, which links the greater Hanover area with both Hamburg and southern Germany. The A2 motorway, a central east-west axis between the Ruhr area and Berlin, also crosses in the immediate vicinity. The site is located in the heart of a junction of three corridors of the Trans-European Transport Network, which extends from the Mediterranean to Scandinavia.

The total volume of the acquisition is dependent on the level of leasing achieved on the project at completion and is capped at a total of €50 million. The acquisition increases Barings’ strategically located European logistics portfolio to 2.4 million sq m across 8 countries, including France, Netherlands, Italy, Spain and Sweden.

Gunther Deutsch, Managing Director, Head of Real Estate Transactions – Europe at Barings, commented: “This asset fits perfectly into Barings European logistics core strategy buying into strong markets with development potential in the future. This transaction represents our fifth acquisition in Europe taking the 2020 logistics acquisition volume to € 260m. Despite COVID-19, we are still keen to expand our logistics investment programme in the Nordic countries, the UK, the Netherlands, Germany, Italy, France and Spain. Transactions with upside potential or forward deal structures are our main focus this year.”

Christoph Wittkop, Managing Director, Real Estate Country Head - Germany at Barings, said: “These high quality properties are well located in a key logistics hub with excellent connectivity to the rest of Europe, which is why this purchase aligns with our core strategy. Demand for logistics space continues to rise across Europe, in part thanks to an acceleration in the growth of online sales penetration as a result of lockdown measures across Europe and the increased importance of robust supply chains. Our extensive network means we have the local knowledge and experience in many different markets that enables us to secure attractive investment opportunities for our investors.”

Barings was advised by Savills and CMS Hasche Sigle (Tax and Legal). Architekten Allianz advised the seller.
 

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.
 

About Barings
Barings is a $346+ 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 June 30, 2020