Signature Capital, PGIM acquire Berlin Arrow portfolio

A partnership between Signature Capital and PGIM Real Estate has acquired the Arrow Portfolio in Berlin from a joint venture of Patrizia and PGGM Private Real Estate as a share deal.

The portfolio co mprises four office properties in Berlin’s central districts of Mitte and Kreuzberg, with a total area of circa 35,000 m2, as well as an additional fully permitted development of circa 8,500 m2.The first two properties are 94% and 69% leased, whilst the latter two are vacant and offer refurbishment and re-tenanting potential.

The properties in Mitte, one of Berlin’s most desired office and retail locations, are former senior living residences which will be converted into top-grade new office space. Financial details were not disclosed.

This purchase is the latest in a series of investments that Signature Capital and PGIM Real Estate’s European value-add debt strategy have jointly made in recent years.

Enda Woods, co-founder of Signature Capital, commented 'We are delighted to have made another successful acquisition in the exciting Berlin market. The properties are an ideal addition to our existing portfolio and offer an attractive value-add opportunity. The continuing tenant demand and shortage of space in the Berlin office space market re-enforces our current acquisitions strategy.'

Andrew Macland, head of European debt at PGIM Real Estate, added 'The investment provided by our European value-add debt strategy for this successful acquisition demonstrates our commitment to capitalise on the strong economics and employment growth in Berlin and other German office markets on behalf of our investors.'

Patrizia and PGGM started assembling the portfolio in 2017 through the purchase of individual and predominantly off-market transactions.  

Paul Hampton, head of International Fund Management at Patrizia, commented: 'This result validates our contention that despite the competitive market place, value can be found, and in some of Europe’s most exciting and dynamic cities.'

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