The JV will target further opportunities in Madrid and Barcelona in the build-to-rent (BTR) and build-to-sell (BTS) sectors, with an initial aspiration of investing €100m+ with potential to develop more than 600 units. Barings will invest on behalf of a mandate with a U.S. investor.

Salas is a real estate group with deep experience in residential developments and more than 30 years’ experience and an extensive track record of more than 4,000 residential units developed for rent and for sale. Salas will manage the full development process through its dedicated in-house team of 270 professionals.

The JV commences with the acquisition of two build-to-sell (BTS) residential development opportunities in Barcelona.

The two initial schemes will comprise 85 units in total, with one refurbishment/extension in Terrassa made up of 41 units, and one new built asset in Tiana of 44 units. The partners will target maximum EPC A. Each development benefits from excellent transport links, with train and bus stations less than 10 minutes away and Barcelona city centre a further 20 to50 minutes by public or private transport.

José Carlos Torres, Managing Director and Country Head, Iberia, at Barings Real Estate, said: “The demand for high quality, modern, energy efficient new homes in Spain’s two major metropolitan areas is enormous. Forming joint ventures with experienced and well-respected developers in the living and logistics sectors is one of our preferred ways of working, and so it is a pleasure to have formed this relationship with Salas given its rich heritage and experience in the residential sector. As we continue to expand our living portfolio in Spain, we ’re looking forward to building on this new partnership.”

Gunther Deutsch, Managing Director and Head of European Transactions at Barings Real Estate, said: "The living sector is one of Europe’s most attractive growth areas, and it is expected that Spain has demand for 217,000 new households per year going forward, with the majority in the Madrid and Barcelona provinces, where supply represents less than 50% of the demand. Besides this strategy, we are looking to deploy capital across the living–whether that’s for BTR, BTS or purpose-built student accommodation–and logistics sectors in our core markets across Europe, such as Iberia, the UK, France, the Netherlands, Italy, Germany and the Nordics.”

Manel Rodríguez Murillo, CEO of Grupo SALAS said: «This partnership with Barings is a significant step forward for Salas, enhancing its capabilities to satisfy the growing housing demand for rent and for sale. We wish this alliance with Barings will be long lasting and will allow us to continue leading the development of new homes based in quality, sustainability and innovation».

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 $406+ 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. Learn more at Barings.com.

*As of March 31, 2024