Barings, one of the world’s largest diversified real estate investment managers, has agreed the speculative forward funding of a 50,409 sq m Grade A logistics property in Béziers, France, in an off-market transaction on behalf of a pan-European logistics joint venture between a U.S. insurance company and a Middle Eastern sovereign wealth fund targeting core+/value-add assets. The parties agreed not to disclose the purchase price.

The asset will offer 48,575 sq m warehouse space, 1,834 sq m of office space, as well as more than 295 car parking spaces. It is due for completion in Q4 2022 and will be located along the A9 motorway in the south of France, one of the prime logistics corridors in the country that connects France from east to west and towards Spain. It will comprise five storage cells with docks on one side. Is it targeting a BREEAM Very Good certification.

Guillaume Bieganski, Director, Asset Management & Transactions at Barings, commented: “This off-market transaction in the supply-constrained south-east of France was an attractive opportunity to extend our French logistics asset base - which currently comprises 200,000 sq m of space across seven assets. Not only does the area have very limited vacant stock and increasing occupier demand, but there is also almost no land available on which to develop new supply. Further, by collaborating with the developer at an early stage, we were able to gain access to interesting assets before they reach the market, while simultaneously reducing risk for the developer.”

Robert Schneider, Managing Director, Portfolio Manager, at Barings, added: “This latest deal is our fifth on behalf of this strategy and our third in France.  For this joint venture, we continue to look for compelling opportunities in our main target markets of Germany and France, as well as the UK, Italy, Spain, the Netherlands and the Nordics, and we remain focused on logistics assets that demonstrate attractive cyclical and structural drivers.”

Barings was advised by Belvedere Capital (acquisition), Cushman & Wakefield (commercial), Oudot & Associés (notary), Allen & Overy (legal, tax and structure), and Etyo (technical and environmental).
 

Barings Real Estate

Barings Real Estate (BRE) 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 www.linkedin.com/showcase/barings-alternative-investments.
 

About Barings

Barings is a $387+ 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.

*Assets under management as of September 30, 2021