Pramerica, the real estate investment arm of NYSE-listed Prudential, has teamed up with Swedish pension fund AP3 in a German retail joint venture.
Pramerica, the real estate investment arm of NYSE-listed Prudential, has teamed up with Swedish pension fund AP3 in a German retail joint venture.
The JV is carrying out two deals with funds managed by Taurus Investment Holdings, with a total value of €265 mln.
In each case, the portfolios contain grocery-anchored retail assets and Taurus will remain a minority partner.
Combined, the two portfolios total 200,000 m2 over 83 sites spread across the country, including some near Munich, Frankfurt and Wiesbaden. Tenants include large food retailers Rewe, Aldi, Lidl, Netto and others.
‘We see a potential for attractive, risk-adjusted returns in established German regional grocery-anchored retail, as the tenants are strong companies and existing sites will benefit because stricter planning rules make new construction difficult,’ said Klas Akerback, senior portfolio manager at AP3.