M&G Real Estate will fund the construction of a 15,060 m² prime office building “Fürst & Friedrich” at the junction of Fürstenwall and Friedrichstraße in Dusseldorf. The deal was made on behalf of the M&G European Property Fund managed by David Jackson and Simon Ellis with an agreed purchase price of more than €100m. The building, developed by Art-Invest Real Estate, is expected to be completed in 2019. The property is already 33% let on a 15-year lease.
David Jackson, Fund manager, M&G Real Estate comments: “Germany is our largest market in Continental Europe in assets under management and this latest forward funding deal in Dusseldorf reflects our pan-European strategy to purchase prime assets in core locations. We continue to seek investments in office, retail and logistics with a particular focus on prime high street retail, food anchored retail, dominant shopping centres, and inner urban offices in major cities as well as modern logistics units in key transport hubs.”
Thomas Käechele, Head of M&G Real Estate, Germany, adds: “Germany is experiencing strong tenant demand which is driving rental growth and long-term income returns. According to Savills, Germany’s seven largest cities saw an increase in property investment during 2017, fuelled by an increase in demand from occupiers and foreign investors looking to capitalise on the major German hubs.”
The purchaser was represented by Savills.