A partnership between Signature Capital and PGIM Real Estate has acquired the Arrow Portfolio in Berlin from Patrizia AG as a share deal.
The portfolio comprises four office properties in Berlin’s central districts of Mitte and Kreuzberg, with a total area of circa 32,000 square metres, as well as an additional fully permitted development of circa 8,500 square metres.
PGIM Real Estate is the real estate investment business of PGIM, the US$1tn global investment management businesses of US-headquartered Prudential Financial, Inc. (NYSE: PRU), and has been a market leader in open-end fund management since it launched its flagship open-end core real estate strategy in the United States in 1970.
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. The Kreuzberg district, which is adjacent to Mitte, was historically an industrial district and is now a creative hot spot with rapidly changing demographics, attracting start-ups and corporates alike.
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. The parties have agreed not to disclose the purchase price.
Enda Woods, co-founder of Signature Capital, comments: “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, says: “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.”
