Barings Real Estate completes USD18.5 bn of transactions in 2017

Barings Real Estate has reported strong performance in 2017, with USD18.5 billion of global transactions completed – up 21 per cent from USD15.3 billion in 2016 – and expectations are for an equally active 2018.

An overview of the firm’s USD18.5 billion of transactions in 2017 include: equity acquisitions and financings totalling USD2.9 billion; executing and advising on USD3.2 billion of equity disposals; USD7.5 billion, or 41 per cent of the total transactions, in real estate debt; and USD2.5 billion of global REIT securities under management.
Transaction volumes in Europe, including direct acquisitions and disposals, were more than USD2.2 billion (EUR1.9 billion) in 2017. Acquisition volumes tripled those achieved during 2016, showing continually increasing investor appetite for pan-European investment strategies. Additionally, the team originated USD995.4 million (GBP720.5 million) in core and structured debt investments and, as a result, grew European debt assets under management by 20 per cent to USD5.4 billion (2016: EUR4.5 billion).
The ongoing performance of Barings’ real estate platform in Europe is driven by a clear focus on pan-European core and value-add strategies, built upon a local, on-the-ground network with a presence in major, strategic regions. The firm’s footprint now includes over 100 employees at offices in 13 European cities, with plans to support this continued growth and further expand its European team in 2018, both by geography and dedicated real estate disciplines.
Charles Weeks (pictured), Head of Real Estate – Europe, says: “2017 was a record year for Barings Real Estate – Europe, with acquisition volumes more than triple 2016 levels and diversified transactions across all geographies, property sectors and risk strategies. This increased activity is a result of our strategy to scale-up our European platform and has enhanced our ability to offer an expanded range of our pan-European investment products to our growing client base.
“Clients tell us they want specialists: local knowledge combined within a pan-European, global approach to investing, and that is exactly what we now have. More than ever, we are well placed to take advantage of opportunities in the market, apply our best-in-class asset management skills and, in turn, deliver strong returns for our clients. Global expansion continues to be one of our key priorities and, backed by our increased volume of transactions in key regions, demonstrates our ability to provide attractive investment opportunities for our expanding international client base.”