PGIM Real Estate has acquired two prime logistics buildings in southern Milan, Italy, and finalised two major leases for logistics properties in Berlin, Germany, on behalf of its European core strategy. PGIM Real Estate is the $208 billion real estate investment firm of PGIM.
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."
Italy logistics acquistion: Borgo San Giovanni
The properties, totalling 41,500 sqm and fully let to a renowned 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.
This acquisition builds on the previous acquisition of two adjacent warehouses, thus completing acquisition of the entire platform totalling 82,500 sqm. Since PGIM Real Estate's acquisition of the first tranche, substantial asset management successes have been achieved, 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.
Germany lease completions: Ludwigsfelde & Grossbeeren
In Berlin, Germany, the asset management team has completed the signing of two major leases for four logistics properties in Ludwigsfelde and Grossbeeren, located south of Berlin in a major logistics hub. Strong tenant interest in the properties has been driven by Berlin's position as a key transport node between major manufacturing and population centers.
In Ludwigsfelde, German logistics firm, Fiege Logistik has signed a long-term lease to expand within the property and will fully occupy the 34,000 sqm DGNB Gold certified building.
In Grossbeeren, Polish logistics company, GreenWays Logistyka signed a lease for a 33,400 sqm property. An extension to the asset is also under construction in order to accommodate high tenant demand, and has been pre-let to an existing tenant. The Grossbeeren asset also has a DGNB Gold construction certification.
With these two leases, PGIM Real Estate is responsible for roughly 15% of all logistics lettings in Berlin in 2023*.
*BNP Market Report on Logistics 2023
