Investment manager Barings has secured the commitment of a further €200 mln for a -European logistics joint venture (PELV) between a US insurance company and a Middle Eastern sovereign wealth fund.
PELV launched with an initial equity commitment of €200 mln in 2019 and is now targeting a total portfolio size of €1 bn of assets.
The current portfolio comprises a total of 315,000 m2 of Grade A logistics space in strategic locations in Germany and France, including two recently acquired development projects in Southern France. PELV is also in advanced negotiations to acquire further 170,000 m2 in prime Southern European locations.
PELV will continue its strategy of targeting core+ and value-add logistics assets in strong submarkets across Europe that are characterized by a shortage of new or refurbished space, as well as robust demand for urban logistics and light industrial real estate. In addition to Germany, the UK and France, the JV is targeting strong logistics submarkets in Italy, Spain, the Netherlands, and the Nordics.
Robert Schneider, managing director, portfolio manager PELV, at Barings, said: ‘The latest commitment to this joint venture is a strong affirmation in the strength of our ability to source compelling deals on a pan-European basis and in the success of this strategy to date. It also demonstrates the continued appetite from investors for Grade A logistics assets that offer attractive risk-return metrics through asset management. We are particularly attracted to submarkets that are underpinned by strong cyclical and structural drivers with a compelling supply and demand imbalance due to a limited stock of high-quality logistics space. We have already identified a strong pipeline of opportunities and look forward to expanding our existing portfolio in the near term.’
Nick Pink, head of Europe Real Estate Portfolio Management at Barings, added: ‘To have doubled the equity and investment capacity of this strategy just two years since launch is a strong endorsement of our research-driven and boots on the ground investment approach, as well as our desire to build long term relationships across asset classes with key strategic partners where we have a strong alignment of interests.’
