PGIM Real Estate has completed the sale of a 32,000 m2 office building in Munich, completing the disposal of a three-asset portfolio in the German city.
The Westend Yards at Hansastrasse 24-36 were acquired by LaSalle Investment Management for an undisclosed fee. The other assets in the Triple portfolio, Thomas-Dehler Straße 18 in Neuperlach and Neumarkter Straße 59-63, were sold in September 2017 and April 2018 respectively, having been acquired in 2016.
The total lettable area of the three buildings was around 58,000 m2. PGIM added value by extending lease terms and increasing rents with major tenants, as well as leasing all the vacant space. In total 26,000 m2 of rental area was newly let or renewed, increasing the overall rent by 16%. PGIM Real Estate also secured permission to build an extra 11,000 m2 of office space at the property.
Sebastiano Ferrante, head of Germany and Italy, said: ‘The sale of the Triple portfolio represents the successful deployment of PGIM Real Estate’s strategy to uncover value in non-CBD office locations across Europe, particularly in Germany.
'In many of Europe’s major office markets, factors such as rising demand, low supply growth and falling vacancy — along with an ageing profile of existing stock — point to the ongoing attractiveness of strategies that seek to create value through active asset management or repositioning strategies. We are pleased with the value we created for our investors with this portfolio.'