Barings’ Nordic logistics letting campaign ends in c€54m sale

Property investment manager Barings has sold a logistics asset in Gothenburg, Sweden, to fashion retailer Kappahl Group for SEK 600 million (€53.9 million) on behalf of a pan-European core strategy.

The property at Arendal 13:2 has a lettable area of 33,200 sq m of with 29 loading docks and a floor to ceiling height of 11.7m. BREEAM Excellent accreditation is being sought.

Barings agreed a forward-commitment to purchase the asset from developer NCC in March 2022 a deal which concluded in January 2024. Originally, Barings planned to let the building but fashion Kappahl opted to buy the asset for use as its central distribution hub. 

The asset is situated close to the entrance to Gothenburg Harbour, which handles approximately 30% of Swedish foreign trade.

“Having acquired this scheme as a speculative development with the intention of producing a core asset, the sale to Kappahl as owner-occupier has vindicated our decision completely and confirmed our underwriting assumptions,” Barings Real Estate managing director and head of Nordics Andreas Norberg said. “While we remain deeply attracted to logistics real estate across the Nordics, the opportunity to close this deal and return a profit to our investors was deemed to be the most attractive option.”

Barings intends to reinvest the capital into development opportunities in the Nordings in sectors including logistics and living including BTR and PBSA.