Barings forward funds Italian logistics in Mantova

PELV is a pan-European logistics joint venture between a US insurance company and a Middle Eastern sovereign wealth fund targeting core+/value-add assets.

Financial details were not disclosed.

According to Barings, work has begun on the sizeable logistics facility in northern Italy, with construction set to progress in two phases before final completion in early 2024.

Marco Corti, managing director and head of Italy at Barings, said: 'This state-of-the-art logistics facility will be well positioned to take advantage of both the superb transport links within the Verona sub-market, as well as the increasing occupier demand for prime quality space that meets their ESG requirements.'

The site is located in close proximity to the A22 motorway, offering access to Verona, a key logistics sub-markets for Italian operators. The scheme, to be developed by an Italian logistics construction specialist, will deliver two Grade A warehouses, with ESG credentials that include LEED Gold certification.

The off-market acquisition marks the first deal in Italy for the joint venture and brings its European portfolio to six assets covering some 400,000 m2.

The joint venture partners have recently doubled their equity commitment into PELV targeting a total portfolio size of €1 bn by deploying it into its target markets, which include the UK, Benelux, Germany, Spain, and the Nordics.

Robert Schneider, managing director and PELV portfolio manager at Barings, said: 'This was a compelling opportunity to acquire a high-quality development before it reached the market – a testament to our approach that combines local knowledge and global expertise - and entirely in line with our strategy for this joint venture.

'We continue to seek out new investments across core+ and value-add logistics assets in markets characterised by a shortage of new or refurbished space, and are keen to continue building our already strong pipeline of opportunities.'