A PGIM Real Estate and Signature Capital partnership has acquired a €300m office portfolio in Berlin from Patrizia and PGGM Private Real Estate.

The joint venture has acquired the Arrow Portfolio of four office properties, with a total area of 32,000sqm, as well as an additional fully permitted development of 8,500sqm.

The properties in Mitte are former senior living residences which will be converted into top-grade new office space.

The first two properties are 94% and 69% leased, whilst the latter two are vacant and offer refurbishment and re-tenanting potential.

Announcing the deal, the buyers said the Arrow Portfolio, which has been acquired as a share deal, is the latest in a series of investments that Signature Capital and PGIM Real Estate’s European value-add debt strategy have jointly made in recent years.

The parties did not disclose the purchase price, but IPE Real Assets understands that the joint venture acquired the Arrow Portfolio for around €300m.

Andrew Macland, head of European debt at PGIM Real Estate, said: “The investment provided by our European value-add debt strategy for this successful acquisition demonstrates our commitment to capitalise on the strong economics and employment growth in Berlin and other German office markets on behalf of our investors.”

Enda Woods, co-founder of Signature Capital, said: “We are delighted to have made another successful acquisition in the exciting Berlin market. The properties are an ideal addition to our existing portfolio and offer an attractive value-add opportunity.

”The continuing tenant demand and shortage of space in the Berlin office space market re-enforces our current acquisitions strategy.”

Paul Hampton, head of international fund management at Patrizia, said: “Firstly we must thank PGGM, with whom we have a 20-year long term business relationship, for having faith in both the strategy and our team.

”It has been a huge success – something that has been made possible by our in-house teams, notably research, deal origination and asset management working so collaboratively together.

”In many ways, this result also validates our contention that despite the competitive market place, value can be found, and in some of Europe’s most exciting and dynamic cities.”