At Zinken 4 in Norrköping, eastern Sweden, which Barings acquired on behalf of a pan-European core real estate strategy in 2020, Barings has agreed a lease for 11,788 sq m (c. 126,885 sq ft), representing 51% of the gross lettable area of 22,966 sq m (c. 247,204 sq ft), with Yokohama Scandinavia AB, part of the Japanese multinational tyre manufacturer The Yokohama Rubber Co., Ltd. A substantial capex programme will now be delivered, with the target of securing BREEAM Very Good certification upon completion. Currently occupied by a single tenant vacating in Q3 this year, Zinken 4 will have a void period of only five months for the majority of the space, with the Yokohama lease commencing in March 2025. Croisette Real Estate Partner acted as leasing agent on behalf of Barings.

At Sunnanå 12:48 in Burlöv, near Malmö in southern Sweden, which Barings acquired in a forward purchase deal on behalf of its second European real estate value add fund (BREEVA II) with Skanska in 2021, Barings has agreed a 10-year lease for 4,980 sq m (c. 53,604 sq ft) with Nya Malmö Mäss-service AB, a trade fairs and exhibition business. Located in one of the top ranked logistics markets in Sweden, the six Grade A logistics assets were completed over the course of 2023 and will be certified according to BREEAM in-use during 2024 with the target of Excellent. Savills represented Barings on the deal.

At Härolden 44 on Fleminggatan 7 in Stockholm, Barings has signed a five-year lease agreement with Norconsult Sverige AB for a 2,065 sq m (22,227 sq ft) office unit. This office building was acquired in 2018 as part of a pan-European strategy to acquire core real estate. The premises will undergo remodeling and refurbishment to meet Norconsult’s requirements, with the move-in date scheduled for 1 April 2025. The deal will bring the asset to 92% occupancy. New Property acted as the leasing agent for this transaction.

Kristina Johnson, Director, Nordics Asset Management, at Barings Real Estate, said: “While the occupier markets in the Nordics remain as challenging as elsewhere in Europe, there continues to be strong demand for high quality, well-located assets, whether they are logistics, office or certain other asset classes. We are successfully executing our business plans on these schemes on behalf of our capital sources, making strategic use of our on-the-ground asset management teams, global research and insight capabilities, and strong partnerships with specialist local experts.”

Andreas Norberg, Managing Director and Head of Nordics at Barings Real Estate said: “These three deals are a strong reflection of how our approach in combining on-the-ground expertise with global insights is a compelling one. They further serve to highlight how occupiers, despite challenges in the wider market, are drawn to quality real estate that is managed by businesses such as ours. As Barings continues to expand its portfolio in the Nordics, particularly in living and logistics assets, we’ll be seeking similar properties that are as attractive to our core and value-add strategy investors as they are to occupiers.”

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 $409+ 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 June 30, 2024