Investment manager Barings has agreed several logistics transactions in Sweden, including the forward purchase of a development in Gothenburg for €52.4 mln on behalf of a core strategy in an off-market transaction.
Forward purchased from NCC, which will develop the space on a speculative basis, the asset will comprise a total of 34,000 m2 of high-quality space with a target of a BREEAM Excellent certification. It will aim to offer modern technical specifications, including 29 loading docks, good outside manoeuvring space and excellent floor-to-ceiling heights, and will offer the potential of being divided into up to four units. It is due for completion in 2024.
Separately, Barings has agreed two pre-lets on behalf of its second value-add real estate fund, BREEVA II, in Sweden. In Gothenberg, Barings has agreed an 11-year lease with Pmflex Group Northern Europe, covering a total of 14,255 m2, in Bäckebol 107:11, Some office space and 5,500 m2 of vacant warehouse space remains available in the asset. At Kamaxeln 3 in Helsingborg, Barings has agreed a ten-year lease with NTEX Inrikes for the entirety of the 18,200 m2 available. These latest pre-lets in the 128,000 m2 portfolio it acquired in 2021 bring the total area pre-leased to 60%.
James Whittaker, managing director and co-portfolio manager for Barings European Core Property Fund at Barings, said: ‘These transactions collectively represent how attractive such prime assets are in the Nordics market. We’re working to bring best-in-class space to a supply-constrained markets and, just as we’re seeing with our existing portfolio, we expect this newly forward purchased asset will attract significant leasing interest. NCC is one of the leading construction companies in the Nordics and we are pleased to be working with them to deliver this development.’
Gunther Deutsch, head of Transactions Europe and Managing Director at Barings, commented: ‘This off-market acquisition was a compelling opportunity to increase our exposure to an attractive market with a trusted partner. Following swiftly on from successful pre-leasing activity across other Nordic logistics assets, this forward purchase is a strong sign of our confidence and commitment in this sector. Having already acquired six assets worth about €300 mln in 2021, we are still keen to buy more in strong Nordic locations and across a range of deal structures, including speculative developments, partnering with developers on joint ventures, sale and lease back transactions or portfolios ranging from core to value add.’
