Barings is forward funding a 50,409sqm logistics property in Béziers, France, on behalf of a US insurance company and Middle Eastern sovereign wealth fund.

It is the latest transaction for a European logistics joint venture between the two unnamed institutional investors managed by Barings.

Last month, the joint venture received an additional €200m commitment from the investors with a view to investing €1bn in European logistics markets.

Robert Schneider, managing director and portfolio manager at Barings, said: “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.”

The latest asset will have 48,575sqm of warehouse space, 1,834sqm of office space and nearly 300 car parking spaces when it is completed by the end of the year.

The development is located on the A9 motorway in the south of France, a logistics corridor that connects the east and west of the country and towards Spain.

Guillaume Bieganski, director of asset management and transactions at Barings, said: “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 200,000sqm 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.”