Barings has acquired a 78,000sqm site in Italy from a private Italian company to develop a logistics project.
The manager has invested an unspecified amount through an Italian real estate fund managed by Savills IM SGR, to acquire the site in Balocco on behalf of its pan-European logistics joint venture PELV.
The site in the Province of Vercelli has planning consent for the development of a 33,000sqm logistics warehouse.
The Balocco acquisition is the second investment for PELV in Italy, following the acquisition of two warehouses in Mantova Nord. PELV, which invests in core-plus to value-add logistics property in prime European markets, is a joint venture between a US insurer and a Middle Eastern sovereign wealth fund.
Marco Corti, managing director and country head Italy at Barings Real Estate, said: “The acquisition of this asset reflects our deep interest in the logistics asset class in Italy, with a strong focus on delivering Grade A products in strategic submarkets in the north of the country.
“With a record level of take-up by occupiers in 2023 – including the six letting deals that Barings made, for a total of circa 300,000sqm – the logistics sector in Italy continues to appeal to investors and it therefore remains one of our preferred sectors, in Italy and across Europe.”
Gunther Deutsch, head of European transactions at Barings Real Estate, said: “This deal represents our appetite for prime logistics assets and demonstrates our continued activity across core and value-add investments. We expect trends in the logistics space to continue from 2023 into the new year: namely, demand for modern, prime spaces with excellent ESG credentials.
“We additionally continue to seek investment opportunities in Italy in the student housing and build-to-rent/build-to-sell sectors, including JV partnerships. This mirrors our appetite across the European continent including Italy, Germany, the Nordics, the UK, France, Spain and the Netherlands.”
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