The logistics assets are notably located in Cavenago and Cambiago and comprise c66,100 and c24,100 square metres of space, respectively. Both properties are fully let with long-term leases to an Italian-listed company.
“This transaction presented a rare opportunity to acquire two core assets in an off-market transaction for our investor,” says Valeria Falcone, Managing Director, Real Estate Country Head Italy and Portfolio Manager at Barings. “The assets are located a short distance from Milan city centre, in an undersupplied area with potential for rental uplifts and yield compression. The e-commerce sector is expanding rapidly in Italy, which is likely to generate a growing demand in the region for high quality logistics assets such as these two properties.”
“This acquisition represents a milestone for Barings in Europe as it brings our logistics transactions total to over EUR600 million,” says Gunther Deutsch, Managing Director, Head of Real Estate Transactions – Europe for Barings.
“We remain interested in expanding our logistics activity further in our target countries of Finland, Sweden, the Netherlands, Germany, UK, France, Spain and Italy and we continue to look for properties in risk sectors from core to value add,” he says.
Both assets benefit from a prime strategic location that allows for direct and convenient access to the A4 (or E64) motorway, which is widely considered the most important Italian axis for logistics. The motorway runs East-West along the Mediterranean and the Alpine logistics corridors, which is a favourably short distance from Milan city centre.