PGIM Real Estate has entered into a joint venture with Aventos to acquire industrial properties across Germany.
PGIM Real Estate said the venture, which is being done on behalf of its European value-add strategy, expects to put together a multi-million euro portfolio over the next two years.
The partnership will focus on standing investments or ground-up developments with ideal lot sizes between €10-40m in urban or well-connected suburban locations. It will target the top seven cities as well as growth regions such as Nuremberg, Hannover, Potsdam and Kassel.
PGIM Real Estate said its joint venture developer and asset manager Aventos will source the investments and be responsible for managing the properties.
The latest partnership follows PGIM Real Estate’s recent announcement of a partnership with Madrid-based real estate manager Azora to invest €150m in last-mile logistics in Spain.
Dominik Brambring, the head of Germany and the Netherlands at PGIM Real Estate, said: “Warehouse/logistics and light industrial real estate have held their bearings in the corona crisis and offer attractive return opportunities. We are continuing to build exposure to the logistics sector, against a backdrop of increasing online retail demand and an increasing emphasis on supply-chain resilience.
“Given the ongoing competition for high-quality space, there is positive momentum for logistics and manufacturing prime rents to grow further. With Aventos’ deep expertise and knowledge of logistics and light industrials, the portfolio will provide investors with access to high-quality sites. We are excited to enter this new venture.”
Karim Rochdi, managing partner and founder of Aventos, said: “We are well networked in the market and continuously check attractive properties. With the capital strength of PGIM Real Estate, we will be able to operate even more effectively in the market in the future.”
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