Barings secures lease extension & 30MW boost in Stockholm

Barings has secured a 10-year lease extension with a global data centre operator at its Vanda 3 asset in Stockholm, alongside an additional 30MW of power capacity for the site.

The agreement covers Vanda 3, a mixed-use asset in Kista, northern Stockholm, which has become an established data centre cluster. Barings manages the asset on behalf of a European core real estate strategy.

Vanda 3 spans about 65,000 square metres and combines data centre, logistics, storage and industrial uses. The unnamed operator occupies about 15,000 square metres.

The extra capacity was agreed with grid operator Ellevio, and infrastructure works to connect the asset to the grid are already under way. The increase will raise the site's available capacity by a further 30MW.

That is significant in Stockholm's data centre market, where access to electricity has become a major constraint on expansion. In several European cities, operators face limits on new development because grid connections and sufficient power supply are harder to secure than suitable land or buildings.

At Vanda 3, the new power allocation is intended to support the conversion of existing buildings, including space expected to become available, as well as future development across the site. Barings is also seeking to secure 25,000 square metres of new building rights from 2027.

The lease extension gives the landlord longer-term income visibility from one of the site's main occupiers as it works through the next phase of development. It also points to continued demand for established facilities in Kista, where proximity to fibre networks and existing technical infrastructure has helped create a concentration of data centre activity.

Nordic focus

Barings has been active across the Nordics in real estate and views the region as a preferred market across several asset classes. In data centres, the Nordic countries have attracted investor and occupier interest because of land availability, cooler climates and power systems that can support energy-intensive operations, although access to grid capacity is becoming more contested.

For landlords and investors, securing power can be as important as securing tenants. In many markets, the value of a data centre site depends heavily on whether additional electricity can be delivered within a workable timeframe, especially for operators seeking to expand existing halls or repurpose adjacent industrial space.

The latest agreement strengthens Vanda 3's position as a location for further data centre growth. The lease renewal reinforces occupancy at the asset, while the power upgrade creates additional leasing and development options.

Olli Forsman, director of transactions and asset management Nordics at Barings, outlined the firm's view of the deal.

"The lease extension with the global data centre operator is a strong endorsement of Vanda 3's quality and long-term relevance as a data centre location. Alongside this, securing additional power capacity is a pivotal milestone that significantly enhances the asset's ability to support further expansion. In a market where access to power remains a key constraint, this puts us in a strong position to support both existing and new operators looking to scale in Stockholm," said Forsman.

Kristina Johnson, senior director of Nordics asset management at Barings, linked the added power and existing infrastructure to future demand at the site.

"The combination of secured power, existing infrastructure and development flexibility creates a compelling proposition for data centre operators and positions the asset well to capture future demand. The Nordics is one of our preferred markets across a range of asset classes and capital profiles, and we will continue to explore all opportunities where we can create value on behalf of our partners," said Johnson.