Barings continues expansion of European RE platform

Two new senior hires to the firm’s real estate debt platform is part of its long-term plan to return to profitability in the new year.

Barings has expanded its real estate debt platform with two appointments as the firm continues to invest in its European operations.

Lars Rogeborg joins the London office as a director of asset management. His responsibilities include sourcing new debt deals, underwriting and analysis. He arrives from Deutsche Pfandbriefbank.

Arriving alongside Rogeborg is Henry Marlow. Marlow joins from Ernst & Young as an analyst and will be tasked with underwriting and providing the due diligence on opportunities. Both will report to Chris Bates, head real estate core mortgage Europe at Barings.

John Bryant Gerber, vice president structured real estate investment, will move from the firm’s California headquarters to join the London office.

Charles Weeks, head of real estate Europe, said: “We continue to grow the size and scope of our European real estate investment and asset management platform, with these appointments further underlining the strength of our ambition in Europe.”

Last year, Barings Real Estate Advisors made big strides in expanding its European investment strategy. According to documents published on Companies House, the firm launched a pan-European fund investment strategy as it opened three new offices in Madrid, Paris and Milan.

In total, the firm now operates from eight offices across Europe. Barings acquired investment firm Pamera Asset Management mid-way through 2014 and completed the rebranding of its name from Cornerstone in September.

As the documents explain, the firm is implementing a long-term plan, noting that the gains from such inward investment is expected “to come to fruition over the next couple of years”. This, the firm notes, is resulting in a delay to full profitability until 2017.

“The additional costs associated with the group’s expansion of its European operations have in the short term increased losses as long-term revenue growth is eclipsed by the immediate impact of expanding the footprint of the business,” Scott Brown, director at Barings, wrote in the annual report.

A spokeswoman from Barings declined to comment on the fundraising strategy and the firm’s finances.