A PGIM Real Estate partnership with Dublin-headquartered Signature Capital has acquired an office portfolio in the centre of Berlin which includes a space designated for redevelopment.
The deal, for an undisclosed sum, comprises four office properties in the central districts of Mitte and Kreuzberg with a total of around 32,000 sqm, as well as an additional fully permitted development of around 8,500 sqm.
The properties to be developed in Mitte are former living spaces for seniors and will be converted into top-grade new office space.
Kreuzberg, adjacent to Mitte was historically an industrial zone and is now a hotspot for start-ups and corporates alike, according to Signature Capital.
This purchase from European real estate investor Patrizia AG and PGGM Private Real Estate marks the latest in a series of investments that Signature Capital and PGIM Real Estate’s European value-add debt strategy have jointly made over recent years.
Enda Woods, co-founder of Signature Capital, said: “The continuing tenant demand and shortage of space in the Berlin office space market re-enforces our current acquisitions strategy.
PGIM refused to comment on the cost of the acquisition, but it has been reported as €300 million elsewhere. A spokesperson for Signature Capital told Funds Europe that price disclosure was not part of the agreement but confirmed that it would be a little less than €300 million.
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