Barings has completed the acquisition, through an existing Italian real estate fund managed by Savills IM SGR, of a c. 78,000m2 parcel of land in northern Italy from a private Italian company on behalf of its pan-European logistics joint venture (PELV).
The Balocco site, located in the Province of Vercelli, has already obtained planning consent for the development of a modern logistics warehouse of grade A standard. The construction plans allow for 33,000m2 GLA, which Barings aims to develop to target LEED Gold certification and net-zero carbon emissions. The construction process will begin this month and is expected to be completed by the end of the year.
This asset is strategically located in the prime logistics submarket of Novara, known for its high rental demand and limited supply. It is situated around 70km west of Milan and 70km east of Turin, and it is just 500m from the exit of the tollgate Balocco on the A4 motorway, which is the primary axis running east-to-west in Northern Italy.
Marco Corti, Managing Director and Country Head Italy at Barings Real Estate, said: “The acquisition of this asset reflects our deep interest in the logistics asset class in Italy, with a strong focus on delivering Grade A products in strategic submarkets in the north of the country. With a record level of take-up by occupiers in 2023 – including the six letting deals that Barings made, for a total of ca. 300,000m2 – the logistics sector in Italy continues to appeal to investors and it therefore remains one of our preferred sectors, in Italy as across Europe.”
Gunther Deutsch, Head of European Transactions at Barings Real Estate, said: “This deal represents our appetite for prime logistics assets and demonstrates our continued activity across core and value-add investments. We expect trends in the logistics space to continue from 2023 into the new year: namely, demand for modern, prime spaces with excellent ESG credentials. We additionally continue to seek investment opportunities in Italy namely in the student housing and build to rent/build to sell sectors, including JV partnerships. This mirrors our appetite across the European continent including Italy, Germany, the Nordics, the UK, France, Spain and the Netherlands.”
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