Barings has announced the close of its inaugural value-add office fund, Barings Innovation and Growth Real Estate Fund (BIG) and associated vehicles, at $680 million, exceeding its target of $500 million.
The strategy seeks to capitalize on fundamental demand drivers in the life science and STEM office space in key markets which attract and retain highly educated and innovative workforces.
“At Barings, we believe there is strong relative value for the highest quality office assets that attract high-caliber life science and technology tenants, who continue to drive advancements in healthcare and global economic growth. The leasing performance of this specialized subset of office has substantially outperformed the overall office market since the beginning of the pandemic,” said Joe Gorin, Barings’ Head of U.S. Real Estate Equity Acquisitions and Portfolio Management.
“We are fortunate to have additional capital that we can invest into what we believe will be attractively priced assets in strategic markets with high degrees of educational attainment and STEM employment.”
Joe Gorin and John Kolb will co-manage the fund with support from a broad team, including Maureen Joyce, Head of U.S. Real Estate Equity Asset Management. The team will leverage Barings’ expansive U.S. platform to execute on the Innovation and Growth strategy.
“We believe our team is well-positioned to find significant opportunities for our investors by balancing current dislocation in the real estate market with the continued growth we see in life sciences and STEM-based industries,” said John Ockerbloom, Head of U.S. Real Estate. “We are pleased to have brought a differentiated offering to a broad and diverse group of institutional investors across regions.”
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