PGIM Real Estate has made its first acquisition in the Netherlands on behalf of the investors in its European core strategy. PGIM Real Estate is the real estate investment and financing business of PGIM, the US$1.4 trillion global investment management business of Prudential Financial, Inc. (NYSE: PRU).
It has acquired a modern 20,918-square-meter warehouse property with 68 parking units in the Dutch city of Eindhoven, the fifth-largest city in the Netherlands. Located close to Eindhoven Airport, the area is a strong logistics hotspot in the country—ideal for “last mile” operations for supermarkets and parcel delivery groups.
The warehouse is fully let to one of the world’s leading logistics companies. Logistics is a key industry for the Dutch economy, as investor allocation to the sector is on the rise due to the favourable landscape of the rental market alongside the expected growth in production, export and e-commerce.
PGIM Real Estate’s first acquisition in the Netherlands on behalf of its European core strategy was conducted through its strategic partnership with DHS Real Estate Investment Management (DHS REIM). An independent real estate manager based in Amsterdam, DHS REIM provides on-the-ground asset management support and deal origination sourcing for PGIM Real Estate’s European core, core plus and value-add strategies.
Thomas Kallenbrunnen, senior portfolio manager for PGIM Real Estate’s core European strategy, comments: “After our European core strategy’s first acquisition in the UK last month, we are extremely pleased to follow up with our first purchase in the Netherlands. Logistics is a key sector for the Dutch economy and has been a key long-term focus for our European core strategy.
“This property is located in a strong logistics submarket in the south of the Netherlands, which is connected to important transport hubs through direct motorway and airport connections. Availability of high-quality logistics space continues to be limited in the Netherlands, pointing to meaningful demand in the years ahead.”