The manager said it has acquired the 15,000sqm asset in Frankfurt’s Sachsenhausen South district for its new open-ended European Core Diversified Property Fund.
The property was built in 1973 and comprises two adjacent residential buildings with 21 floors with over 382 apartments.
PGIM Real Estate said residential real estate company DeWAG will act as an operational partner and will be responsible for the asset management of the property.
Thomas Kallenbrunnen, senior portfolio manager for PGIM Real Estate’s European core strategy, said: “Our core strategy pursues a broad diversification into all sectors of the European metropolitan regions, particularly in residential real estate in Germany and France where we see real opportunities.
”As a long-term oriented investor, we believe this acquisition will generate a sustainable and solid return for our investors.”
Helmut Beyl, founder and chairman of the management board of DeWAG, said: “The central location of the property with its predominantly small units reflects the continuing demand on the Frankfurt residential market.
”In addition, Sachsenhausen is a very popular residential district in the city of Frankfurt due to its good connectivity and infrastructure. The recently completed new developments and the reconstructed Henninger Tower, a landmark of the city, underline this.”