Barings grows European logistics loan book with EUR123m development loan to Panattoni
Barings has grown its existing European logistics loan book to EUR123 million having provided a new EUR12.9 million first mortgage loan, on behalf of institutional investors, to finance the acquisition and development of a Grade A logistics asset located in North Bremen, Germany.
The 36-month loan extends Barings’ relationship with Panattoni, the largest developer and manager of logistics facilities in Europe, having previously provided two ongoing construction loans totalling c. £53.1 million (€59.7 million) for developments in Derby and Crewe in the UK.
Panattoni is developing this new c23,500 sq m logistics warehouse facility on a speculative basis while seeking a pre-let. Located in Schwanewede on the dual carriageway connecting Bremen to Bremerhaven, the asset is situated in a key north German logistics hub where Panattoni has successfully developed several other assets and which benefits from convenient access to many key ports that specialise in a variety of goods including bulk goods, containers, offshore components, grain, breakbulk, crude oil and petroleum products.
This loan is Barings’ sixth in the logistics space in the last 18 months and follows the EUR75.6 million first mortgage loan secured against four Grade A logistics assets comprising a total of 116,600 sq m of space at various stages of development within the Los Gavilanes industrial park in Getafe, Madrid.
Barings originated EUR735 million of loans in 2019 as it continued to expand its European debt platform, 60 per cent of which were outside the UK, including the team’s first investments in Spain, Germany and the Netherlands.
Chris Bates, Co-Head of Real Estate Debt Origination – Europe at Barings, says: “Our latest loan to close in Europe will enable the construction of a high quality asset in a major logistics hub with extremely low vacancy. As our third loan to Panattoni, it also demonstrates the strength of the sponsor relationships we build and the flexible loan packages we are able to provide.”
Sam Mellor, Head of Real Estate Debt Portfolio Management and Origination – Europe, at Barings, adds: “In a short period of time we have assembled an attractive portfolio of loans in the logistics space both in the UK and in Europe, where we have a high conviction in the continued growth of the market. Indeed, the importance of supply chains and distribution networks has been thrown into even sharper focus as a result of the Covid-19 pandemic. We have a strong pipeline of opportunities in the logistics space as well as other traditional and alternative real estate assets classes, as we continue to grow our debt platform in Europe.”
Mark Connor, Chief Financial Officer of Panattoni Europe, says: “We are extremely pleased to have this opportunity to expand our cooperation with Barings into the German market and very much look forward to continuing to grow and strengthen our relationship in the UK and on the continent. The flexibility, commercial approach and focus on execution brought to each deal by the Barings team makes for a very efficient closing process.”