PGIM Real Estate has provided a €300 mln senior loan to a prominent European logistics platform to support the acquisition of a portfolio of logistics assets across Germany.
The senior loan aligns with the firm's European Core Debt investment strategy.
The portfolio comprises high-quality logistics properties totaling over 510,000 m2, strategically located in major German logistics hubs like Frankfurt, Rhine-Ruhr, Leipzig, and Munich.
These assets, constructed between 2004 and 2022, benefit from geographic diversification and BREEAM-certified with a rating of Very Good or above (or comparable DGNB Gold ratings).
A diverse range of reputable tenants, including major players in non-food retail, home furnishing, warehousing, distribution, and car manufacturing, occupy the properties, ensuring a stable income stream.
James Mathias, senior portfolio manager for European Core Debt at PGIM Real Estate, commented: ‘Due to cyclical market dislocation and structural change there’s an opportunity to step in and support best-in-class borrowers and replace traditional funding providers that are retrenching. Germany offers compelling private lending opportunities for market participants with strong relationships and a robust track record who can provide liquidity.’
The announcement of the €300 mln loan comes just days after PGIM Real Estate joint forces with pan-European investor and asset manager M7 Real Estate to set up a €100 mln joint venture focused on value-add industrial and logistics assets in Germany.
The partnership aims to acquire and reposition underperforming industrial and logistics properties in prime German locations, enhancing their asset value and generating attractive returns.
