Global real estate investment manager PGIM has acquired a portfolio consisting of seven grocery-anchored retail properties in Germany. The vendor of the properties is the investment firm Greenman Investment. The acquisition was conducted as part of PGIM's European core real estate strategy and structured in partnership with 4FI Management.
With 218 billion US dollars in real estate assets under management, PGIM's real estate division is one of the two largest real estate investment managers in the world. The newly acquired portfolio is intended to supplement the existing European core platform with high-income consumer goods locations in the German market.
Location focus and tenant structure
The acquired properties are spread across the Berlin metropolitan region, the Rhine-Ruhr area, and the east German locations of Stralsund and Magdeburg. The individual assets are characterised by high occupancy rates and favourable demographics in their respective catchment areas. Anchor tenants include established operators in the German food retail sector.
- —Portfolio comprises seven retail park and convenience retail properties in established locations
- —Geographical focus on Berlin, the Rhine-Ruhr region, Stralsund, and Magdeburg
- —Operational management handled by nxl RE GmbH, affiliated with 4FI
- —Transaction brokered by advisory firm JLL
Rory Morrison, Head of Core Strategies, Real Estate, Europe at PGIM, contextualised the purchase strategically. In his assessment, the grocery-anchored retail real estate segment in Germany continues to demonstrate resilience, underpinned by dependable cash flows and a robust tenant base. He noted that the transaction allows investors to participate in this market segment and its return potential via a diversified portfolio.
Transaction advisory and future management
Ongoing asset and property management for the seven properties will be assumed by nxl RE GmbH, which is affiliated with partner 4FI. The transaction process was brokered on the intermediary side by JLL. Legal, tax, and technical advisory services for PGIM were provided by the law firm DLA Piper alongside Laurus, BNP Paribas Real Estate, and KPMG.
