The scheme will consist of c. 72,000 sq m GLA, of which 63,000 sq m will be prime logistics space, 5,600 sq m will be an additional storage mezzanine area and 3,000 sq m will be office space. The development will deliver best-in-class sustainability credentials, including photovoltaic panels on the roof, charging stations for electric vehicles, and extensive reuse of rainwater. The project is expected to achieve a minimum of DGNB Gold standard. Barings will develop the scheme on a speculative basis in a joint venture with a logistics real estate developer

Located centrally within Germany, a two hours’ drive from both Frankfurt and Leipzig, the site provides easy access throughout the country. It has direct connections to the A4 and, because of its central location, is expected to attract occupiers from a wide range of different industries for use as a distribution hub.

TA Europe advised Barings on technical and environmental due diligence, while Ashurst acted as legal advisors.

The transaction is the fifth acquisition that Barings has completed in the European logistics market in the last couple of months. Barings has also acquired a 78,000 sq m site in Balocco, Italy, and a 39,000 sq m in Helsinki Finland – both on behalf of PELV – while it has further acquired a 210,000 sq m site in Lisbon, Portugal and a 70,000 sq m site in Mantua, Italy, on behalf of its second European real estate value-add fund (BREEVA II).

Sascha Becker, Managing Director and Country Head Germany at Barings Real Estate, said: “This site represents a tremendous opportunity to create a new, high quality, logistics space in the heart of Germany. Logistics real estate in Germany remains a deeply attractive proposition for our investors given the compelling supply and demand dynamics.”

Rob Fairfax, Director and Portfolio Manager for PELV, said: “Logistics remains a compelling investment class across Europe in 2024, particularly where our global insights and local knowledge enable us to identify opportunities before they reach the market. As we continue to deploy capital across our investment jurisdictions – the Nordics, Netherlands, UK, France, Italy and Spain, in addition to Germany – we are particularly interested in exploring joint venture development projects and refurbishments, on a forward transactions basis or stabilized assets with value-add potential.”

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.

*As of March 31, 2024