Real estate investment manager Barings has raised a further €200m (£170m) to build a €1bn pan-European logistics joint venture.
The PELV JV, between a US insurance company and a Middle Eastern sovereign wealth fund, had launched with an initial equity commitment of €200m in 2019 but is now targeting a total portfolio size of €1bn following this latest commitment of funds.
The current portfolio comprises a total of 3.4m sq ft of grade-A logistics space in Germany and France, including two recently acquired development projects in southern France. The JV is also in advanced negotiations to acquire further 1.8m sq ft in a number of southern European locations.
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.”
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