Barings, through its European value-add real estate strategy, has acquired a 18,482sqm residential development project in Denmark from developer Catella, which will retain a minority stake in the project.
Barings has invested an unspecified amount to acquire Vega, a 269-unit residential project in Herlev, Copenhagen, marking its first real estate investment in Denmark.
The fund manager has been active since 2010 in the Nordics, where it currently manages €970m in real estate.
Andreas Norberg, managing director and head of Nordics at Barings Real Estate, said: “The Copenhagen area presents an opportune environment for residential development, with demand outweighing supply and this set to increase further.
“Entering the Danish market through a partnership with Catella, a highly-regarded specialist with deep-rooted experience in Copenhagen’s residential sector, aligns well with our strategy of working alongside local experts to deliver high-quality, sustainable living spaces across Europe.”
Rory Allan, managing director and portfolio manager for the European closed-ended, value-add real estate fund series at Barings Real Estate, said: ”The build-to-rent residential sector is one of Europe’s most resilient, benefitting from strong demographic drivers and a fundamental lack of supply which will continue to stimulate rental growth over the short, medium and long term, making it a key strategy for our pan-European value-add strategies.
“As demonstrated by this off-market acquisition executed by our Nordic team, the deal pipeline generated by our platform is a key strength and we look forward to announcing further acquisitions for the strategies in our value-add series in the near future, delivering on our conviction that this is a compelling time in the cycle to deploy capital.”
Morten Gustafson, managing director at Catella Investment Management Denmark, said: “We are excited to join forces with Barings on its first real estate investment in Denmark.
“It will significantly enhance the project’s prospects. It also demonstrates how Catella generates value-add business opportunities across our entire platform.”
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