Prupim, the UK real estate investment manager, has completed the purchase of the Kaiser Tengelmann Warehouse in Berlin for EUR 57mln on behalf of the M&G European Property Fund. Built in 2004, the single storey, Grade-A asset comprises over 35,000 m[sup]2[/sup] of logistics space and almost 4,000 m[sup]2[/sup] of office space. The property generates an annual rent of EUR 3.7mln, reflecting a net initial yield of 6.5%.
Prupim, the UK real estate investment manager, has completed the purchase of the Kaiser Tengelmann Warehouse in Berlin for EUR 57mln on behalf of the M&G European Property Fund. Built in 2004, the single storey, Grade-A asset comprises over 35,000 m2 of logistics space and almost 4,000 m2 of office space. The property generates an annual rent of EUR 3.7mln, reflecting a net initial yield of 6.5%.
The vendor was BGP Investment (a GPT joint venture), which is managed by Australian fund and asset management group Babcock & Brown.
Prupim said the warehouse is located 20 minutes from the airport and minutes from Berlin's main communications infrastructure, with access to most of Western Europe's key cities by train, motorway and air links. There is 12 years remaining on the lease to German retail chain Kaiser Tengelmann. The site is used for food storage, distribution and administration purposes.
David Jackson, fund manager for the M&G European Property Fund commented: 'We are very pleased to have successfully secured the Kaiser Tenglemann warehouse in Berlin at an attractive initial yield. Key strengths of this asset include its long lease to a strong tenant, the excellent location for distribution, and the high quality flexible warehouse specification. These attributes reinforce the attractive long term investment potential of this asset'.
Cushman & Wakefield Investors acted as investment and asset management advisor for Prupim.
