Thu, 08/03/2018 - 10:38
M&G Real Estate, the real estate fund management arm of M&G Investments, is to fund the construction of a 15,060 sq m prime office building “Fürst & Friedrich” at the junction of Fürstenwall and Friedrichstraße in Dusseldorf.
The deal was made on behalf of the M&G European Property Fund managed by David Jackson and Simon Ellis with an agreed purchase price of more than EUR100 million.
Located in the City-Sud sub market of Dusseldorf’s central business district, the building will be completed in 2019 and is being developed by Art-Invest Real Estate. It is already 33 per cent let on a 15-year lease.
Similar to other German cities, healthy office employment since 2013 has driven demand for office space. Historically dominated by utilities, industrials and mining companies, over the past two decades Dusseldorf has become a major focus for other industries including telecoms. Strong demand has pushed overall vacancy levels to a 14-year low with the City-having the lowest vacancy rate in the city at around 4 per cent.
David Jackson, Fund manager, M&G Real Estate, says: “Germany is our largest market in Continental Europe in assets under management and this latest forward funding deal in Dusseldorf reflects our pan-European strategy to purchase prime assets in core locations.
“We continue to seek investments in office, retail and logistics with a particular focus on prime high street retail, food anchored retail, dominant shopping centres, and inner urban offices in major cities as well as modern logistics units in key transport hubs.”
Thomas Käechele, Head of M&G Real Estate, Germany, adds: “Germany is experiencing strong tenant demand which is driving rental growth and long-term income returns. According to Savills, Germany’s seven largest cities saw an increase in property investment during 2017, fuelled by an increase in demand from occupiers and foreign investors looking to capitalise on the major German hubs.”
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