Barings fund enters the Nordics with 39,000m2 logistics buy in Finland

Financial details were not disclosed.

Representing the first investment by Barings on behalf of PELV in the Nordics, the asset is made up of two warehouses constructed in 2009 and is fully let to three tenants. Building A, which contains 33,800-m2 of gross lettable area (GLA), benefits from 10.5-10.8 m free ceiling height, while Building B offers 10.5m free ceiling heights across 5,000 m2 GLA.

The scheme is within five minutes of Helsinki Airport.
 
Barings' Finnish portfolio consists of a hotel asset, U14, and a large logistics asset in Hyvinkää, north of Helsinki, both of which it acquired on behalf of a European strategy to acquire core real estate.
 
Andreas Norberg, managing director and head of Nordics at Barings Real Estate, said: 'This acquisition makes an attractive addition to our existing logistics portfolio in the Nordics consisting of 16 assets and 433,000 m2 of space. The assets fit well into our Finnish and wider portfolio across the Nordics given its exceptional location, strong rental growth potential in a market struggling to provide supply to meet the demand, and Finland’s ranking as second out of 139 countries in the Logistics Performance Index. Alongside Sweden and Denmark, Finland remains one of our preferred markets in the Nordics.'

Barings is 'eager to explore further such acquisition opportunities in the logistics sector', he noted, adding that the firm is also looking into the residential BTS/BTR and PBSA sectors. Nordberg: 'We’re particularly keen to acquire stabilised assets that are under-let or that have value-add potential, as well as joint ventures with developers.'
 
Rob Fairfax, director and portfolio manager for PELV, added: 'As our first acquisition in the Nordics on behalf of PELV, as well as the second acquisition so far this year for the strategy following a transaction in Italy in January, this deal reflects Barings’ continued commitment to the logistics sector across Europe.'