The land in Caorso was acquired in December 2022, following the conclusion of a permitting process, to develop two Grade A logistics warehouses. Construction on the first warehouse (c. 30,500 sq m) began in early 2024 and, during construction, was pre-let to an international retailer at a rental level above initial underwriting. The asset was completed in late 2024 and obtained the LEED Gold certificate. Construction on a second warehouse (c. 20,000 sq m) on the same plot of land is expected to start imminently.

The asset is located in the Piacenza core logistics sub-market, the second largest in northern Italy after Milan, 1km far from the A21 motorway tollgate. The asset is also well connected (just 10km) to the A1 motorway, one of the longest and most important highways in the country, running from Milan in the north to Naples in the south.

The sale of Caorso marks the first exit for BREEVA I in the Italian logistics market. In Italy, BREEVA I owns another newly developed logistic asset in Arluno – a suburb of Milan – which is fully let to an international logistics player in the food sector.

Marco Corti, Managing Director and Country Head Italy at Barings Real Estate, said: “The acquisition of the Caorso asset by an international institutional investor is a testament to the capabilities of our Italian asset management team to deliver high quality developments with superb ESG credentials which are highly appreciated by tenants. This has allowed us to outperform the underwriting business plan for this asset. The deal also highlights the healthy appetite for high quality logistic assets among Italian occupiers, especially within prime locations with convenient access to important motorways.”

Rory Allan, Managing Director and Portfolio Manager of Barings’ value add fund series said: “This is the latest exit in our BREEVA series and our fourth overall from Italy which has been a successful hunting ground for us and continues to be so with its supply constraints and continued tenant demand and capital liquidity.  Our team’s ability to source off market sites at attractive entry levels and execute the business plan despite challenging macro conditions has helped to deliver outsized returns for our investors.  We are actively sourcing new opportunities across Western Europe, taking advantage of what we believe is a compelling point in the cycle for value add investing.”

Guizzo Srl acted as seller’s broker for this transaction.

Contacts
Ben Monteith/Tom Carnegie (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 $421+ billion* global asset management firm that partners with institutional, insurance, and intermediary clients, and supports leading businesses with flexible financing solutions. The firm, a subsidiary of MassMutual, seeks to deliver excess returns by leveraging its global scale and capabilities across public and private markets in fixed income, real assets and capital solutions.

*As of December 31, 2024