Real estate investment manager Barings has completed the acquisition of a 78,000-m2 parcel of land in northern Italy from a private Italian company acting on behalf of its European logistics joint venture (PELV).
The site in Balocco, in the Province of Vercelli, already has planning consent for the development of a modern grade A logistics warehouse. Planning allows for the construction of 33,000 m2 GLA, which Barings intends to develop to target LEED Gold and net zero carbon emissions. Construction starts this month, with completion expected by the end of the year.
The asset is located in the prime strategic logistics submarket of Novara, noted for its strong rental demand and limited supply, and is approximately 70km west of Milan and 70km east of Turin.
This is the second investment for PELV in Italy, following the acquisition and full lease-up of two warehouses in Mantova Nord. PELV is a joint venture between a U.S. insurance firm and a Middle Eastern sovereign wealth fund, deploying its capital into diversified (core-plus to value-add) logistics property in prime European markets.
Marco Corti, managing director and country head Italy at Barings Real Estate, said: 'The acquisition of this asset reflects our deep interest in the logistics asset class in Italy, with a strong focus on delivering Grade A products in strategic submarkets in the north of the country. With a record level of take-up by occupiers in 2023 – including the six letting deals that Barings made, for a total of 300,000 m2 – the logistics sector in Italy continues to appeal to investors and it therefore remains one of our preferred sectors, in Italy as across Europe.'
Gunther Deutsch, head of European Transactions at Barings Real Estate, said: 'This deal represents our appetite for prime logistics assets and demonstrates our continued activity across core and value-add investments. We expect trends in the logistics space to continue from 2023 into the new year: namely, demand for modern, prime spaces with excellent ESG credentials. We additionally continue to seek investment opportunities in Italy namely in the student housing and build to rent/build to sell sectors, including JV partnerships. This mirrors our appetite across the European continent including Italy, Germany, the Nordics, the UK, France, Spain and the Netherlands.'
