Barings Acquires 243-Unit Build-To-Rent Project in Tumba, Sweden With Innovation Properties as Developer

TUMBA, Sweden — June 22, 2026 — Barings has acquired a 243-unit build-to-rent development project in Tumba, a town south of Stockholm, with Innovation Properties serving as the residential developer. The transaction was completed on behalf of a European value-add real estate strategy, the firm announced.

The development will span six residential buildings alongside a parking facility and is situated within walking distance of Tumba centre, approximately 26 minutes by commuter rail from Stockholm city centre. All buildings are targeting an EPC A energy rating, with practical completion of the final unit expected in November 2028.

Project Details and Sustainability Features

Beyond its residential component, the project incorporates social sustainability elements, including a parking structure with an activity rooftop featuring a running track, a football court, and an outdoor gym. All six buildings are designed to meet EPC A standards, reflecting a broader emphasis on energy efficiency across Barings' Nordic development pipeline.

Financial terms of the transaction, including purchase price, loan amount, and per-unit pricing, were not disclosed.

Barings Expands Nordic Residential Footprint

The Tumba acquisition is the latest in a series of build-to-rent investments Barings has made across the Nordic region. The firm said it now has nearly 1,450 residential units under construction across the Nordics, concentrated in the Stockholm and Copenhagen metropolitan areas, bringing its total Nordic residential unit count to more than 2,000.

Andreas Norberg, Managing Director and Country Head Nordics at Barings Real Estate, said the firm's early-stage entry into the Tumba project allowed it to support finalization of the detailed zoning plan, a factor the firm cited as central to its approach in the region.

"This transaction reflects our continued commitment to the Nordic living sector," Norberg said. "By entering the project at an early stage and utilising our boots-on-the-ground expertise, we have supported the finalisation of the detailed zoning plan. This positions the project for delivery while offering investors exposure to Stockholm's build-to-rent market, which is supported by attractive long-term fundamentals and a structural undersupply of housing. In addition to this investment, we still have capacity for more residential development in the Nordics and are evaluating appropriate opportunities."

Stockholm Rental Market Undersupply Drives Investment Thesis

Barings cited a persistent undersupply of rental housing in the Stockholm region as a key driver of the investment, noting that population growth has outpaced new housing supply for more than 20 years. The firm said this dynamic mitigates vacancy risk in new developments and supports long-term demand fundamentals.

Gunther Deutsch, Managing Director and Head of European Transactions at Barings Real Estate, said the transaction reflects the firm's broader ability to source early-stage development opportunities in markets with favorable supply-demand dynamics.

"This investment demonstrates our ability to source and structure early-stage residential development opportunities in markets where supply-demand dynamics remain highly supportive," Deutsch said. "In 2025, we invested €580m in 10 transactions, and we remain active in the living sector looking for core to value-add real estate in the Nordics and other priority European markets of Iberia, France, Italy, UK, Germany, the Netherlands and Ireland."

Part of a Broader European Living Sector Push

The Tumba deal is part of what Barings describes as a long-term conviction in the Nordic living sector, underpinned by demographic fundamentals and continued housing undersupply in key urban regions. The firm's European transaction activity in 2025 totaled €580 million across 10 transactions, with the living sector representing a central allocation focus alongside core and value-add real estate in multiple European markets.

Barings is a $481 billion global alternative asset manager as of March 31, 2026, owned by insurance companies MassMutual and MS&AD. Barings Real Estate, the firm's property investment arm, invests across major real estate sectors globally and provides financing solutions to real estate borrowers.

Innovation Properties is serving as the residential developer on the Tumba project.

Sources

Barings — Barings Acquires Build-to-Rent Project in Tumba, Sweden (June 22, 2026)