Barings‘ fifth Australian value-add real estate fund has acquired Sydney assets in separate transactions for more than A$450m (€253m).

The Barings Real Estate Australia Value Add Fund (BRAVA V) has bought the Darling Square office building in Sydney’s Darling Harbour for A$360m from Aware Super and Australian Prime Property Fund - Commercial, managed by Lendlease.

BRAVA V has also entered into a 50-50 partnership with Aware Super to acquire the Home HQ Artarmon retail centre on Sydney’s Lower North Shore for A$180m BlackRock and Growthpoint Properties Australia.

Shaun Hannah, executive director, investment management at Barings Real Estate Australia, said: “Darling Square is a best-in-class asset, strategically located in Sydney’s vibrant Darling Harbour precinct. Its premium quality, strong ESG profile, and blue-chip tenant base, anchored by the Commonwealth Bank of Australia, make it a compelling long-term investment.”

Gareth Price, Barings Real Estate Australia head of real estate,  said the acquisition was the third since September this year for BRAVA V Fund - the fifth fund in the Australia value-add fund series, first launched in 2010.

Zak Felton, Aware Real Estate transactions manager, said: “This acquisition is strongly aligned with our east-coast retail strategy. The asset’s dominant trade area, proven leasing depth and tenancy diversification makes it a compelling addition to our portfolio, and we are pleased to partner with Barings to maximise the opportunity.”

BlackRock’s APAC Real Estate team formed a partnership with Growthpoint Properties to acquire Home HQ in 2018 and has repositioned over the investment period.

Sam Sproat, Growthpoint executive director, funds management, said the asset was purchased with a defined strategy to reposition the tenancy mix and enhance the income profile, with a vision for what the value-add could be.

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