Barings, one of the world’s largest diversified real estate investment managers, has secured the commitment of a further €200 million for a pan-European logistics joint venture (“PELV”) between a U.S. insurance company and a Middle Eastern sovereign wealth fund. PELV launched with an initial equity commitment of €200 million in 2019 and is now targeting a total portfolio size of €1 billion of assets.

The current portfolio comprises a total of 315,000 sq m of Grade A logistics space in strategic locations in Germany and France, including two recently acquired development projects in Southern France. PELV is also in advanced negotiations to acquire further 170,000sq m in prime Southern European locations. 

PELV will continue its strategy of targeting core+ and value-add logistics assets in strong submarkets across Europe that are characterized by a shortage of new or refurbished space, as well as robust demand for urban logistics and light industrial real estate. In addition to Germany, the UK and France, the JV is targeting strong logistics submarkets in Italy, Spain, the Netherlands, and the Nordics.

Robert Schneider, Managing Director, Portfolio Manager PELV, at Barings, said: “The latest commitment to this joint venture is a strong affirmation in the strength of our ability to source compelling deals on a pan-European basis and in the success of this strategy to date.   It also demonstrates the continued appetite from investors for Grade A logistics assets that offer attractive risk-return metrics through asset management. We are particularly attracted to submarkets that are underpinned by strong cyclical and structural drivers with a compelling supply and demand imbalance due to a limited stock of high-quality logistics space. We have already identified a strong pipeline of opportunities and look forward to expanding our existing portfolio in the near term.”

Nick Pink, Head of Europe Real Estate Portfolio Management at Barings, added: “To have doubled the equity and investment capacity of this strategy just two years since launch is a strong endorsement of our research-driven and boots on the ground investment approach, as well as our desire to build long term relationships across asset classes with key strategic partners where we have a strong alignment of interests.”
 

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. Learn more at www.barings.com.

*Assets under management as of September 30, 2021