Barings has completed the sale of two office buildings in Europe on behalf of value-add real estate fund BREEVA I for an undisclosed fee.
Stockholm-based private property company Harmerica Properties AB has bought a 6,100 sq m (circa 65,000 sq ft) office scheme in the central business district of the Swedish capital and a German institutional investor has bought a 9,000 sq m (circa 97,000 sq ft) mixed-use asset in Milan, Italy.
Andreas Norberg, managing director and head of Nordics real estate at Barings, said: “The sale of Skvalberget 33 follows a range of value-creation initiatives undertaken by our team in the Nordics and the completion of our business plan for the asset. This disposal has delivered strong returns to our investors and further contributes to the impressive track record of BREEVA I as a vehicle for value-add European real estate investment.”
Marco Corti, managing director and head of Italian real estate at Barings, added: “The disposal of Viale Cassala 22 comes ahead of our initial underwriting. This is due to the quality of asset management activity, with the local team having redeveloped the building into a modern Grade A product. Despite the Covid pandemic and the challenging economic environment, the office rent achieved is 15% above our original underwriting assumption and the successful disposal is a testament to our understanding of the market and the attractive returns possible from value-add real estate.”
Valeria Falcone, head of European value-add investing at Barings, said: “The disposals of Skvalberget 33 and Viale Cassala 22 demonstrate how our combination of on-the-ground knowledge and global expertise is a winning one, with the sales marking the latest successes for BREEVA I’s approach on sustainability and product innovation.
“While the current market has its challenges, Barings continues to have appetite to invest in our preferred asset classes of offices, logistics and residential, although we will be uncompromising on both quality and price. We are keen to continue exploring opportunities, including joint venture projects, in our preferred markets of Italy, the Nordics, Germany, France, Spain, the Netherlands and the UK.”
