Barings has bought an 85,000sqm plot of land in the southern part of Madrid, Spain for a logistics development.

Barings said it the asset on behalf of an institutional investor for an undisclosed sum.

The manager said it will partner with a developer to build two independent warehouse buildings. The two warehouses will comprise 17,500sqm and 32,000sqm and can be leased/operated independently. Both properties will be completed by the third quarter of 2020.

Adolfo Favieres, managing director, country head real estate for Spain, Barings, said this is the third logistics transaction in Spain after acquiring two logistics asset in Zaragoza and Ontígola for a core investment strategy.

“This particular transaction shows Barings’ ability to move up the risk curve to capture additional value and we look forward to partnering with developers on other product types, such as residential or office.”