Pramerica Real Estate Investors, the real estate investment management and advisory business of Prudential Financial, has increased its investment into a joint venture with US logistics company Panattoni aimed at European logistics real estate.
In an announcement on the tie-up today, Pramerica said it had increased its investment to €220 million from an initial €100 million last October. The original outlay was for investments in the logistics markets of Central and Eastern Europe, however that has been increased by €40 million. Concurrently, Pramerica has allocated €80 million for Western European investments.
The Western European component of the joint venture will target investments in France and Germany and will comprise properties with a minimum area of approximately 10,000 square metres and which are least 50 percent prelet. A first investment could complete this quarter, Pramerica said.
The Central and Eastern European component of the joint venture has already completed three investments, comprising three developments in Poland totalling 57,400 square metres. These investments cost the joint venture €33.4 million. The joint venture will also seek deals in Czech Republic and Slovakia as well.
Max Kreuter, portfolio manager, Pramerica Real Estate Investors said: “This venture gives our investors access to opportunities that provide the potential for strong returns, particularly in Germany and France.”
Pramerica and Panattoni have teamed up before for logistics investments in Europe. Their previous partnership saw the development of 11 assets comprising about 241,000 square metres of logistics space in Poland.