PGIM Real Estate sells Westend Yards in Munich, completing its Triple Portfolio salePGIMRealEstatesellsWestendYardsinMunich,completingitsTriplePortfoliosale

MUNICH, April 2, 2019 – PGIM Real Estate has completed the sale of Westend Yards at Hansastrasse 24-36, a 32,000-square-meter office property in Munich, on behalf of its European value-add strategy. PGIM Real Estate is the real estate investment business of PGIM, the $1 trillion global investment management businesses of Prudential Financial, Inc. (NYSE: PRU).

Westend Yards, a six-story property in the well-established office market of Westend, sits less than five kilometers from Munich’s central business district with nearby access to motorways and local metro lines.

This sale completes PGIM Real Estate’s disposition of the Triple Portfolio, which was acquired in 2016 and comprised two additional assets in Munich located in Neuperlach and near Ostbahnhof. Together, the portfolio comprised approximately 58,000 square meters of rental area with an average 5 percent vacancy rate and in addition to Westend Yards, included:

• Thomas-Dehler Straße 18 in Neuperlach, Munich, a five-story property with 9,700 square meters of office space, which was sold in September 2017.
• Neumarkter Straße 59-63 near Ostbahnhof, a five-story property comprising approximately 16,200 square meters of offices, which was sold in April 2018.

PGIM Real Estate’s active asset management strategy to add value to the portfolio included the extension of lease terms as well as the increase of rents with major tenants, and the leasing of all vacant office space. In total, approximately 26,000 square meters of rental area was newly let or renewed, increasing the overall rent by 16 percent. In addition, PGIM Real Estate secured a building permit to create an additional 11,000 square meters of office space at Westend Yards, all of which have enabled PGIM Real Estate to maximize the value of the three properties.

“The sale of the Triple portfolio represents the successful deployment of PGIM Real Estate’s strategy to uncover value in non-CBD office locations across Europe, particularly in Germany,” commented Sebastiano Ferrante, head of Germany and Italy. “In many of Europe’s major office markets, factors such as rising demand, low supply growth and falling vacancy—along with an aging profile of existing stock—point to the ongoing attractiveness of strategies that seek to create value through active asset management or repositioning strategies. We are pleased with the value we created for our investors with this portfolio.”