Barings has added a 39,000sqm logistics asset in Finland’s capital to its pan-European logistics joint venture (PELV) portfolio.

The manager said it has acquired the fully-let logistics scheme in Helsinki from an international asset manager, but did not disclose any financial information.

Barings said the assets, comprising two warehouses constructed in 2009, will be developed to improve its sustainability credentials.

The Finnish transaction is the first investment by Barings on behalf of PELV in the Nordics.

Barings already owns a Finnish real estate portfolio consisting of a hotel asset, U14, and a large logistics asset in Hyvinkää, north of Helsinki. Both were acquired on behalf of a pan-European strategy to acquire core real estate.

Andreas Norberg, managing director and head of Nordics at Barings Real Estate, said the acquisition “makes an attractive addition” to the manager’s existing logistics portfolio in the Nordics consisting of 16 assets and 433,000sqm of space. 

“The assets fit well into our Finnish and wider portfolio across the Nordics given its exceptional location, strong rental growth potential in a market struggling to provide supply to meet the demand, and Finland’s ranking as second out of 139 countries in the Logistics Performance Index. Alongside Sweden and Denmark, Finland remains one of our preferred markets in the Nordics,” Norberg said.

He added that following a €470m investment in European logistics in 2023, Barings is seeking further acquisitions in the sector, as well as in residential (build-to-sell/build-to-rent) and student housing.

“We’re particularly keen to acquire stabilised assets that are under-let or that have value-add potential, as well as joint ventures with developers,” Norberg said.

Rob Fairfax, director and portfolio manager for PELV, said: “As our first acquisition in the Nordics on behalf of PELV, as well as the second acquisition so far this year for the strategy following a transaction in Italy in January, this deal reflects Barings’ continued commitment to the logistics sector across Europe.

“We see strong potential in investing at this point in the cycle to secure opportunities that deliver strong returns for our investors, and are active with core+ and value-add capital across our preferred markets, including the Nordics, the Netherlands, Germany, UK, Italy, France and Iberia.”

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