Barings and Canvass Capital announce $250 million self-storage joint venture

0

Acquisition of three properties in North Carolina, First new development to innovate in Hilton Head, South Carolina

CHARLOTTE, North Carolina, May 19, 2022 /PRNewswire/ — Barings, one of the world’s largest diversified real estate investment managers, today announced that it has entered into a joint venture agreement with real estate investment management firm Canvass Capital LLC (“Canvass”) to acquire and develop self-storage properties throughout the Southeastern United States. The joint venture seeks to invest up to $250 million equity in self-storage space over the next few years.

Barings and Canvass have completed the acquisition of three self-storage assets in the Lake Norman area, north of Charlotte, North Carolina, consisting of multiple buildings totaling 1,129 units spread over 163,000 rentable square feet (“rsf”) on over 16 acres. Plans for the portfolio include the selective expansion of additional climate-controlled buildings and a covered RV and boat warehouse, as well as various capital, technology and sustainability-focused upgrades.

The joint venture also acquired a 3.82 acre site at Hilton Head, South Carolina for the development of a new self-storage facility, with plans to open two buildings this fall containing a total of 1,231 self-storage units and totaling nearly 150,000 rsf.

“We are delighted to enter into this strategic partnership with Canvass Capital and target the high-growth self-storage market,” said John Ockerbloom, head of US real estate equities at Barings. “The advantages of Lac Normand and Hilton head will be Barings’ first self-storage assets in the eastern United States. development potential that will offer our clients attractive risk-adjusted return opportunities. »

Barings is convinced of the opportunities available in the fragmented self-storage real estate sector. The variety and mix of industry demand drivers have shown strong resilience through economic cycles, especially during the pandemic as self-service storage needs increased. Expansion of self-storage on excess land, retail conversions, and technological and operational efficiencies present long-term growth potential.

In line with Barings’ commitment to sustainability, the development and repositioning of self-service storage assets will also provide opportunities for the Barings team to incorporate ESG-specific features and enhancements, including solar panels and additional energy savings.

“Partnering with a global real estate leader like Barings reinforces our creative approach to investing and strengthens our reach across the capital structure,” said Peter Campbell of Canvass Capital.

About Baring

Barings is a $371 billion*+ global investment manager that seeks differentiated opportunities and builds long-term portfolios across public and private bond markets, real estate and specialty equity markets. With investment professionals based in North America, Europe and Asia Pacific, the company, a subsidiary of MassMutual, aims to serve its customers, communities and employees, and is committed to sustainable practices and responsible investment. Learn more about www.barings.com.

* Assets under management at March 31, 2022

About Canvass Capital LLC

Canvass Capital LLC (“Canvass”) is a real estate private equity firm focused on generating attractive risk-adjusted returns for its investors in individual assets and platform investments across cycles and over the long term. Canvass seeks to invest in operating businesses focused on real estate where value can be created through active asset management and by maximizing the efficiency of the operating component. Canvass’ portfolio includes medical practices, self-storage, mixed-use and industrial among other types of alternative real estate investments. Additionally, Canvass provides preferred shares on third-party projects. For more information about Canvass Capital LLC, please visit: www.canvascap.com.

Contact

[email protected]

Barings SOURCE

Share.

Comments are closed.