PGIM Real Estate acquires residential property in Frankfurt for Core European Strategy
PGIM Real Estate has acquired a residential building in Frankfurt’s Sachsenhausen South district on behalf of its recently launched European core open-ended real estate strategy.
PGIM Real Estate is the real estate investment business of PGIM, the USD1 trillion global investment management business of US-headquartered Prudential Financial, and has been a market leader in open-end fund management since it launched its flagship open-end core real estate strategy in the United States in 1970.
The property was built in 1973 and comprises two adjacent residential buildings with 21 floors and approximately 15,000 square meters of living space across over 382 apartments. The property is conveniently located in the residential district Sachsenhausen-Süd and has good connections to the inner city and the public and private transportation networks.
Thomas Kallenbrunnen, senior portfolio manager for PGIM Real Estate’s European core strategy, says: “Our core strategy pursues a broad diversification into all sectors of the European metropolitan regions, particularly in residential real estate in Germany and France where we see real opportunities. As a long-term oriented investor, we believe this acquisition will generate a sustainable and solid return for our investors.”
DeWAG will act as PGIM Real Estate’s operational partner and will be responsible for the asset management of the property.
Helmut Beyl, founder and chairman of the Management Board of DeWAG, says: "The central location of the property with its predominantly small units reflects the continuing demand on the Frankfurt residential market. In addition, Sachsenhausen is a very popular residential district in the city of Frankfurt due to its good connectivity and infrastructure. The recently completed new developments and the reconstructed Henninger Tower, a landmark of the city, underline this.”