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 33,800sq m GLA, benefits from 10.5-10.8 m free ceiling height, while Building B offers 10.5m free ceiling heights across 5.000 sq m GLA. Barings will develop the scheme’s sustainability credentials by improving the asset’s BREAAM In-Use certification, as well as EPC ratings for both buildings.

The scheme is within five minutes of Helsinki Airport, considered the best logistics location in Finland, 20 minutes from Vuosaari Harbour and 30 minutes from the central business district of Helsinki. Sitting close to Ring Road III, the location is well connected to the vast road network of the Helsinki Metropolitan Area and key logistical entry points of southern Finland, with access to 30% of the Finnish population available in under one hour of vehicle travel.

Real estate in the Nordics, including Finland, remains a preferred market for Barings in Europe. Its 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 pan-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 sq m 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. We are eager to explore further such acquisition opportunities in the logistics sector – having deployed €470m in this sector across Europe in 2023 – as well as in residential BTS/BTR and PBSA sectors. 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, said: “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. We see strong potential in investing at this point in the cycle to secure opportunities that deliver strong returns for our investors, and are active with core+ and value-add capital across our preferred markets, including the Nordics, the Netherlands, Germany, UK, Italy, France and Iberia.”

Contacts
Polly Warrack/Ben Monteith (SEC Newgate)
baringsRE@secnewgate.co.uk

Barings Real Estate
Barings Real Estate (BRE) is a part of Barings and offers a broad range of global investment opportunities across the private debt and equity investment markets. BRE invests in all major property sectors and offers an expansive range of financing solutions to real estate borrowers.  Follow us on LinkedIn at linkedin.com/showcase/barings-alternative-investments.

About Barings
Barings is a $381+ billion* global investment manager sourcing differentiated opportunities and building long-term portfolios across public and private fixed income, real estate, and specialist equity markets. With investment professionals based in North America, Europe and Asia Pacific, the firm, a subsidiary of MassMutual, aims to serve its clients, communities and employees, and is committed to sustainable practices and responsible investment.

*As of December 31, 2023