Barings’ first value-add fund sells office buildings in Sweden and Italy

Barings, on behalf of a value-add real estate fund, BREEVA I, has completed the sale of two office buildings.

The investment manager disposed of a 6,100-square-meter (65,700-square-foot) office scheme, located at Brahegatan 10 in the central business district of Stockholm, to Harmerica Properties AB, a private property company based in Stockholm, (photo above), and a 9,000-square-meter (96,900-square-foot) mixed-use asset at Viale Cassala 22 in Milan to a German institutional investor.

The two latest sales bring the total of disposals by BREEVA I to nine assets, with the fund having returned more than 89 percent of equity to its investors, achieving a blended Gross IRR on realizations in excess of 30 percent. Earlier this year, Barings closed its second European real estate value-add fund, BREEVA II, at its hard cap of €850 million ($853 million) after receiving €1 billion of client demand, significantly surpassing the target of €750 million ($753 millio