Barings raises €850m for second European value-add real estate fund

Barings raises €850m for second European value-add real estate fund

Barings has raised €850 million for its second pan-European value-add real estate fund, Barings Real Estate European Value-Add Fund II (BREEVA II).

The fund exceeded its initial target of €750 million.

Of the capital raised for BREEVA II, 50% came from existing investors, with the remainder from new clients, and was well diversified across North America Europe and Asia Pacific. The majority of the capital came from pension funds and insurance companies.

BREEVA II will focus on repositioning and build-to-core opportunities in the logistics, alternatives – living and office sectors.

Barings has already committed approximately 30% of the fund’s capital through eight transactions in the UK, Sweden, Germany and Italy and expects a number more to close in the coming weeks.

“To have closed BREEVA II with such a high quality and well diversified capital base is a strong endorsement in the strength of our strategy, investment track record and relationships with our clients. There was over €1 billion of client demand for this fund and we look forward to efficiently deploying the capital raised in the months ahead,” said Paul Murphy, Head of Client Portfolio Management, European Real Estate.

“Through our strong network of local offices we have been able to not only continue our comprehensive value-add strategy throughout the pandemic, but also identify and execute opportunities that have arisen as a result of it. This ongoing success, proven by the very strong returns delivered from BREEVA I, which has already returned 65% of the capital, has led to increased demand from investors and we have already identified a promising pipeline of further acquisitions following our initial commitments,” added Valeria Falcone, Head of Value-Add Investing Europe.