Global real estate investment manager Barings has acquired a plot of industrial land in South Verona, Italy, via an Italian real estate fund managed by Kryalos SGR in an off-market deal.
Financial details were not disclosed.
The land has been purchased for the development of a prime 75,000 m2 grade A logistics complex with Leed certification, which will be developed by a specialist Italian logistics developer, Logiman.
Valeria Falcone, portfolio manager & real estate country head – Italy at Barings, commented: 'The availability of modern, Grade A logistics space in the Italian market is decreasing due to the fast absorption of new speculative developments in key locations, such as Verona.
'This acquisition presents a rare opportunity to acquire a strategically located parcel of land for the phased development of a modern, high quality logistics scheme, including a last mile warehouse, that we are confident will appeal to the occupational market, as already confirmed by the current strong interest demonstrated by operators for the project.'
The scheme will be built in two phases, the first of which comprises 40,000 m2 of fully consented space due to be delivered in 2021.
The second phase, involving the construction of a further 35,000 m2 of warehouse space, is expected to be completed in mid-2022.
The development is situated some 10 km south of Verona city centre, in close proximity to the A4 motorway exit Verona Sud, and not far from the nearest toll gate of the A22 motorway, which connects Italy, Austria and Germany.
Barings, on behalf of different clients, has already acquired a total of 190,000 m2 of logistics space in Italy over the last 18 months and has secured a pipeline of a further three transactions in Northern Italy, totalling an additional 150,000 m2 of space.
Gunther Deutsch, managing director, head of real estate transactions – Europe at Barings, added: 'We expect logistics to remain one of the most resilient asset classes in real estate, supported by the continued growth of the e-commerce market, which is still underdeveloped in Italy, and the increased focus on supply chain certainty in the wake of Covid-19.
'We have invested just short of €500 mln into logistics in 2020 and in 2021 we are expecting to accelerate that, targeting the Nordics, the Netherlands, UK, Germany, France, Italy and Spain.'
Barings and Kryalos were advised by DeFaveri & Partners.
