Barings has bought three logistics properties in Italy on behalf of a core investment strategy.

The portfolio was acquired through an Italian real estate fund managed by Kryalos for an undisclosed amount. The assets include an 11,000sqm warehouse in Isola Rizza and two assets located in San Giorgio in Mantova.

Barings said the assets form part of a wider six-building portfolio which has been acquired by Barings over the last two years.

Marco Corti, managing director, country real estate head in Italy at Barings, said: “This complex transaction, which we have completed over two years, demonstrates our ability to work flexibly with owner-occupiers in order to help them realise their expansion strategies, whilst delivering high-quality space that meets specific occupier requirements, especially in the growing cold storage sector.

“This investment also provides sustainable long income for our clients. In Italy alone, we have acquired a total of 250,000sqm of logistics space and secured a pipeline of a further five transactions totalling 250,000sqm of logistics warehouses as we continue to expand our logistics platform in Italy in the near future.”

Gunther Deutsch, managing director, head of real estate transactions – Europe at Barings, said: “This further off-market transaction proves the strength of our connections in our local markets as well as our ability to act as a strategic partner for owner-occupiers looking to expand their businesses with build-to-suit and sale and leaseback opportunities, this time in Italy.”

Deutsch said with a target of approximately €1bn of logistics transactions in 2021, Barings remains interested in pursuing both speculative development and forward funding transactions in the Nordics, The Netherlands, the UK, Germany, Italy, France and Spain.

“Additionally, we will consider the development of larger logistics parks through potential partnerships with developers.”

Paolo Bottelli, CEO of Kryalos, said: “The Italian logistic real estate market is growing fast and there are many opportunities for investing in locations that support new economic and sector trends, for example, the growth of cold storage.

“Kryalos is committed to supporting Barings in identifying opportunities in the logistic market, particularly in the North of Italy.”

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