PGIM Real Estate, the real estate investment business of PGIM and Prudential Financial, has acquired a logistics portfolio in Italy on behalf of an institutional investor.
Financial details were not disclosed.
The three warehouse properties, located in greater Rome and Northern Italy, were purchased for the investor's
European core/ core plus investment programme.
With a total area of around 70,000 m2, the properties are fully let to prime tenants operating in ecommerce, pharmaceutical, tobacco and transport sectors.
Two of the properties are located in Northern Italy, one of the most significant regions for logistics properties due to transport links; the third property is located in the greater Rome area, which is the second most important economic region in Italy besides Milan, with the largest consumer market in the country.
Earlier this year, PGIM Real Estate announced a dedicated on-the-ground presence in Italy by appointing Musie Bocrezian as head of transactions for Italy, based in its Milan office. Bocrezian leads the firm’s efforts to source and execute investment opportunities in Italy.
Sebastiano Ferrante, head of Germany and Italy for PGIM Real Estate, said: 'The Italian logistics sector is benefitting from compelling market fundamentals with share of online sales and e-commerce growing significantly.
'Prime logistics rent in Northern Italy are also expected to increase over the next five years given positive occupier market development outlook. This acquisition plays to our defensive investment philosophy and demonstrates our ability to identify attractive properties in highly competitive markets.'
