Barings has acquired a 70,000sqm site in Italy from a private Italian company to speculatively develop a logistics project.

The fund manager has invested an undisclosed amount through an Italian real estate fund managed by Savills IM SGR to acquire the site in San Giorgio Bigarello in Mantua (Mantova), on behalf of its second European value-add real estate fund, BREEVA II.

Barings expects to develop a 37,000sqm logistics warehousing which is expected to be completed in early 2025. The latest project represents the manager’s third investment in the area.

BREEVA II’s logistics portfolio includes a recently acquired 210,000sqm site near Lisbon in Portugal and last month’s acquisition of a 78,000sqm site for a logistics scheme in Balocco in Vercelli, Italy.

Marco Corti, managing director and country head Italy at Barings Real Estate, said: “The acquisition of this asset, our second of the year so far in northern Italy, reflects our committed interest in the logistics asset class in Italy.

“We have already let circa 150,000sqm in four warehouses in the same micro-area to well-regarded national and international tenants during 2023, confirming the appeal of the Mantova submarket.

“With a strong level of take-up by occupiers in 2023 – a historical record – the logistics sector in Italy continues to demonstrate strong fundamentals and therefore remains one of our preferred asset classes.”

Gunther Deutsch, managing director and head of European transactions at Barings Real Estate, said: “This investment confirms our interest for best-in-class logistics assets in prime markets and demonstrates our continued activity across this sector throughout Europe, as also evidenced with our recent acquisition in Portugal.”

Deutsch said in addition to logistics, Barings continues to seek investment opportunities in Italy, particularly in the student housing and build-to-rent/build-to-sell sectors, including through joint ventures – be it refurbishments or new developments.

“This reflects our ambitions across the European continent this year, in territories including Italy, Spain, Germany, the UK, France, the Nordics and the Netherlands.”

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