PGIM Real Estate, on behalf of its European value-add strategy, has entered into a joint venture with Aventos to acquire industrial properties across Germany.
Over the next two years, the JV will create portfolio with a multi-million euro volume, focusing on standing investments or ground up developments with ideal lot sizes between €10-40 mln.
Aventos will source the investments and be responsible for managing the properties.
The venture will target the top seven cities as well as growth regions such as Nuremberg, Hannover, Potsdam and Kassel. The team will look for opportunities to further develop sites in the portfolio in order to bring them into line with best market standards.
Dominik Brambring, 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.'
This venture follows PGIM Real Estate’s recent announcement of teaming up with Madrid-based real estate manager Azora to invest €150 mln in last-mile logistics in Spain.
Said Dr. Karim Rochdi, managing partner and founder of Aventos: '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.'
