Barings sells Grade A logistics asset in Italy

Global real estate investment manager Barings has sold a newly constructed Grade A logistics warehouse in Italy to a leading institutional investor. 

Serravalle Scrivia

This transaction, made on behalf of Barings' second European real estate value-add strategy, involved an asset totalling approximately 53,450 m2 of gross leasable area, held within an Italian real estate fund managed by Savills IM. The sale represents the successful completion of Barings' business plan for this property, generating strong investor returns that exceeded initial projections.
Barings acquired the land in Serravalle Scrivia (Alessandria) in July 2022, already holding the necessary development permits. A construction contract with a top-tier logistics general contractor was promptly signed, with construction commencing in Q4 2022 and finishing on schedule and within budget by the end of Q4 2023. 
The warehouse achieved a LEED Gold certification. Notably, the entire warehouse was pre-let during construction to a significant national grocery chain, at an estimated rental value (ERV) that surpassed initial forecasts.
Located 45km north of Genoa in Serravalle Scrivia, the property sits within a prime logistics sub-market characterised by a shortage of suitable space and limited future supply due to its mountainous surroundings. The site benefits from excellent access to the A7 motorway, linking Milan to Genoa, and offers good visibility from the motorway.
Marco Corti, managing director and country head Italy at Barings Real Estate, said: “This is the second successful exit for us on behalf of our second European real estate value-add strategy, following the recent sale of San Giorgio Bigarello, and the deal has secured excellent returns to investors significantly ahead of the initial business plan. Logistics remains a preferred asset class for us across the region, and with a healthy occupier market, especially in prime, constrained locations, we will continue to look for and invest in similar opportunities in the future.”
Gunther Deutsch, managing director and head of Transactions Europe and Country Head Germany at Barings Real Estate, added: “This transaction marks our eleventh logistics sale this year and a total of €500 mln secured as a result. This is similar to that on the acquisition side, demonstrating our agility in the market whilst pursuing our overall aim of generating great returns for our investors. Alongside the living sector and office sector, logistics will remain a priority asset class for our value-add and core funds, and we are in a good position to undergo further acquisitions for comparable opportunities across our preferred European markets - the Nordics, NL, Germany, UK, Italy, Spain and France.”
Savills provided advisory services for the seller throughout the deal and also acted as the leasing agent.