PGIM Real Estate sees conditions for strong structural growth in the European logistics sector as it announces investment in two prime buildings in southern Italy.
The properties, totalling 41,500 sqm and fully let to a logistics company, are located in Borgo San Giovanni, in the Milan South area, one of the country’s most significant regions for logistics due to a strong local economy and transport links.
But it is not the first time has bought in the area. It already owns two adjacent warehouses, meaning it has acquired 82,500 m2 at the whole site.
The firm has completed substantial asset management at the first tranche, including the installation of a 320kW photovoltaic system and achievement of BREEAM Very Good labels. All four buildings benefit from geothermal system cooling/heating, which together with the planned installation of additional photovoltaic systems, will substantially reduce the platform’s carbon footprint.
Christine Fritz, co-portfolio manager of the European core strategy, said: ‘Our logistics platform has seen significant rental growth as a result of our disciplined approach to acquisitions and active asset management capabilities enabling us to activate rental value and deliver continuous income growth.’
‘More broadly, global investor sentiment continues to show that logistics remains highly favoured in Europe – we see a strong structural growth story in the sector for Italy, Germany and other European prime markets, with rents rising on the back of elevated e-commerce adoption and supply chain restructuring.’
