PGIM Real Estate’s European core strategy increases office exposure

PGIM Real Estate has acquired three fully-let European offices for European core strategy for an undisclosed sum.

The manager said it has completed the acquisitions of the 6,983sqm The Warehouse office in Amsterdam, a 2,899sqm asset located on Rue de Taitbout in Paris and the 5,757sqm C-Space building in London.

Christine Fritz, co-portfolio manager of the European core strategy at PGIM Real Estate, said: “Despite mainstream sentiment, many prime continental European office markets have seen steady rental growth throughout the last 24 months. With expected positive recovery across European economies, we see demand for prime offices stabilising and continued decline in office vacancy rates.

“As we focus on submarkets with innovation and technology clusters, the locations for these acquisitions were key to the investments. Tech hubs in European cities are continuing to benefit from a growing workforce, as demand remains strong for tech jobs, and workers drawn by dynamic and vibrant locations.”

Fritz said these locations, therefore, benefit from attracting leading global tenants, thus maintaining sustained rental growth and low vacancy rates.

”Moreover, each office property has strong existing fundamentals with contemporary features, which combined with our focus on improving ESG-credentials, means we see a clear pathway to enhance value across these investments.”

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