PGIM Real Estate recently completed an off-market acquisition of the Magnet Portfolio, a Hamburg office portfolio. PGIM Real Estate is the real estate investment business of PGIM, the $1 trillion global investment management business of Prudential Financial. Rockspring Property Investment managers sold the portfolio on behalf of TransEuropean V Property Partnership Limited.
The portfolio comprises of three office properties and a development site in the Hamburg Nord business park in Hamburg Langenhorn. The three buildings offer a total of 27,600 m² of lettable space and were built between 1992 and 1999. The development site is approximately 4,100 m².
The portfolio is located five km north of Hamburg Airport, 15 km north of the city center, and near access points to the main traffic arteries. It is within walking distance to both the metro, which offers direct links to Hamburg city center and the airport, and recently completed amenities including a full-range supermarket.
Sebastiano Ferrante, head of Germany and Italy for PGIM Real Estate said: “The combination of a strong cash flow and potential for expansion offered by the Magnet Portfolio makes this an ideal acquisition. We believe its current and future rental values will be supported by the asset’s location near Hamburg, with its growing population, rising real incomes and record low unemployment.”
Stuart Reid, a Rockspring partner responsible for Transactions and Asset Management for Germany, Switzerland and Austria, commented, “Following the purchase three years ago, we were able to complete several value-enhancing asset management activities including lease extensions and capex investment, and the Fund has taken the opportunity to exit after completion of its business plan.”