Barings has invested an unspecified amount on behalf of a private insurance client to acquire a 264-home project in Sweden’s capital from Innovation Properties.

The four-building project in central Skogås, in the Stockholm suburb of Huddinge, will be built in stages throughout mid-to-late 2025. Innovation Properties remains a partner in the project.

The Huddinge scheme is the second Swedish residential investment for Barings, following the manager’s 585-apartment build-to-rent (BTR) project in Spånga’s Bromsten, Stockholm.

Andreas Norberg, managing director and head of Nordics at Barings Real Estate, said: “Given the chronic shortage of homes in Stockholm, this agreement will bring very much needed, beautiful new homes to the community. Working with our partners at Innovation Properties and the Municipality of Huddinge, we look forward to welcoming residents into their new homes from the middle of next year.

“As we expand our living assets in Stockholm through this acquisition, we are eager to continue investing capital into residential property in Sweden and throughout the Nordics, recognising the importance for the communities and investors we serve.”

Gunther Deutsch, managing director and head of European transactions at Barings Real Estate, said: “This transaction comes as part of a series of recent deals focused on the living sector in our preferred markets in Europe, and is a great example of our approach across the continent – namely, identifying partners with whom we can initiate joint ventures, build strong relationships to deliver high-quality real estate, particularly in BTR and build-to-sell, student accommodation, logistics and in prime offices in core city-centre locations.

“We have doubled our European residential investment volume in 2023 and we are keen to expand the residential footprint further in 2024.”

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