PGIM Real Estate acquires Italian logistics portfolio
PGIM Real Estate has acquired a logistics portfolio in Italy, on behalf of an institutional investor as part of their European Core/Core Plus investment programme. The portfolio consists of three warehouse properties located in greater Rome and Northern Italy.
PGIM Real Estate is the real estate investment business of PGIM, the USD1.3 trillion global investment management businesses of Prudential Financial, Inc (NYSE: PRU).
With a total area of around 70,000 sq m, the properties are fully let to prime tenants operating in e-commerce, pharmaceutical and transport sectors. Two of the properties are located in Northern Italy, one of the most significant regions for logistics properties due to transport links; the third property is located in the greater Rome area, which is the second most important economic region in Italy besides Milan, with the largest consumer market in the country. These assets are closely located at major motorways providing good accessibility throughout Italy and Europe.
Earlier this year, PGIM Real Estate announced a dedicated on-the-ground presence in Italy by appointing Musie Bocrezian as head of transactions for Italy, based in its Milan office. Bocrezian leads the firm’s efforts to source and execute investment opportunities in Italy.
Sebastiano Ferrante, head of Germany and Italy for PGIM Real Estate, says: “The Italian logistics sector is benefitting from compelling market fundamentals with share of online sales and e-commerce growing significantly. Prime logistics rent in Northern Italy are also expected to increase over the next five years given positive occupier market development outlook. This acquisition plays to our defensive investment philosophy and demonstrates our ability to identify attractive properties in highly competitive markets.”
The team continues to build exposure to logistics in the long term, against the backdrop of increasing online-retail-related demand and a shifting trend for industrial companies to carry larger and more robust inventories as part of their supply chain management.