M&G Real Estate, the real estate fund management arm of M&G Investments, is to fund the construction of a prime office building in Dusseldorf by Art-Invest Real Estate for a volume exceeding €100 mln.
The 15,060 m2 scheme dubbed 'Fürst & Friedrich' is located at the junction of Fürstenwall and Friedrichstraße in the west German city.
The deal was made on behalf of the M&G European property fund, managed by David Jackson and Simon Ellis.
'Germany is our largest market in Continental Europe in assets under management and this latest forward funding deal in Dusseldorf reflects our pan-European strategy to purchase prime assets in core locations,' said Jackson.
'We continue to seek investments in office, retail and logistics with a particular focus on prime high street retail, food anchored retail, dominant shopping centres, and inner urban offices in major cities as well as modern logistics units in key transport hubs.'
Located in the City-Sud sub market of Dusseldorf’s central business district, the building will be completed in 2019 and is already 33% let on a 15-year lease.
'Germany is experiencing strong tenant demand which is driving rental growth and long-term income returns. According to Savills, Germany’s seven largest cities saw an increase in property investment during 2017, fuelled by an increase in demand from occupiers and foreign investors looking to capitalise on the major German hubs,' said Thomas Käechele, head of M&G Real Estate, Germany.
The purchaser was represented by Savills.
