Barings Real Estate is to develop a 75,000 sq m logistics facility in South Verona, Italy.
In an off-market deal, the firm has acquired a site from an Italian real estate fund managed by Kryalos. Italian logistics specialist Logiman will develop the scheme, which will be built in two phases.
The first 40,000 sq m phase has full consent and is due for completion in 2021. The second phase of 35,000 sq m is expected to be completed in mid-2022.
The site is located about 10 km south of Verona city centre, close to the Verona Sud exit of the A4 motorway and to the A22, which connects Italy with Austria and Germany.
Barings has acquired a total of 190,000 sq m of logistics space in Italy during the last 18 months and has a 150,000 sq m pipeline in Northern Italy. The firm said it intends to double its logistics portfolio in Italy in the near future.
“The availability of modern, Grade A logistics space in the Italian market is decreasing due to the fast absorption of new speculative developments in key locations, such as Verona,” said Barings portfolio manager and real estate country head, Italy, Valeria Falcone.
Barings invested almost €500 million in logistics in 2020 and expects to accelerate its rate of investment this year, targeting the Nordics, the Netherlands, UK, Germany, France, Italy and Spain.
Barings and Kryalos were advised by DeFaveri & Partners.