PGIM Real Estate, the world's second-largest real estate investment manager with USD 219 billion in real estate assets under management and administration, has successfully sold a development plot in Unterschleissheim, near Munich. The buyer is a European infrastructure investor. The transaction comprises an area specifically designated for the development of a data centre and features a secured power supply.
The project in question was acquired in 2024 by PGIM's closed value-add fund, European Value Partners (EVP) II. A key feature of the site is the available capacity of 30 megavolt-amperes (MVA). Planning permission and all necessary permits under the Federal Immission Control Act (BImSchG) have already been secured for the planned data centre. The target Power Usage Effectiveness (PUE) for the future data centre is 1.2.
Strategic Development and Market Background
Nabil Mabed, Head of Value Add Europe, Real Estate at PGIM, stated that the sale of the Munich site realises the value appreciation achieved by securing permits and grid connection. He emphasised that this transaction underlines PGIM's expertise in identifying suitable properties in metropolitan regions and developing them into data centre-ready projects. This strategy creates added value for investors, regional companies, and future end-users.
Mabed also pointed to the continuously attractive investment opportunities in the European data centre market. Demand is significantly driven by the increasing use of Artificial Intelligence. This contrasts with a limited supply, due to the scarcity of suitable plots and sufficient power capacities.
Importance of the Munich Location
The choice of Munich as a location is strategically justified. The Bavarian capital is home to several large companies, including seven of the 40 DAX corporations, as well as leading German universities. As Germany's third-largest city, Munich hosts the DE-CIX internet exchange point, one of the country's seven connectivity hubs. Furthermore, the region benefits from long-distance fibre optic cables connecting Munich with Eastern and Southern Europe, thus ensuring excellent infrastructure connectivity.
