Investment manager Barings has acquired a 70,000 m2 parcel of land in northern Italy through an existing Italian real estate fund managed by Savills IM SGR.
The plot was purchased from a private Italian company, on behalf of its second real estate European value-add fund (BREEVA II).
The scheme in San Giorgio Bigarello, Mantova, allows for the speculative development of 37,000 m2 GLA of Grade A logistics warehousing, for which the site already has planning consent.
In line with Barings’ pan-European approach to ESG, it will develop a single warehouse to target credentials such as LEED Gold, while minimising carbon emissions over the lifecycle of the project. Construction is to start this month with completion expected in early 2025.
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 150,000 m2 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.'
The asset is located within the prime strategic logistics submarket of Verona, noted for its strong rental demand and limited supply, and is approximately 40 km south of Verona and 5 km north-east of Mantova. The scheme is Barings’ third investment in the area.
This latest logistics acquisition on behalf of BREEVA II closely follows that of the purchase of a 210,000 m2 plot of land in a prime location near Lisbon, Portugal. Last month, Barings also completed the acquisition of a 78,000 m2 site for a Grade A logistics scheme in Balocco in Vercelli, Italy.
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.
'Prime logistics, benefitting from strong demand, limited supply and rental growth will remain a deeply attractive proposition for Barings.
'In addition to logistics, we continue 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.'
