New joint venture to acquire portfolios totaling €265 million
MADISON, N.J.--(BUSINESS WIRE)--
Prudential Real Estate Investors and the Third Swedish National Pension
Fund, AP3, announced today they have formed a joint venture to invest in
retail properties throughout Germany. The joint venture has acquired a
first portfolio and agreed to acquire a second portfolio of
grocery-anchored retail properties from funds managed by Taurus
Investment Holdings, which remains a minority partner in both
transactions. PREI® is the real estate investment and advisory business
of Prudential Financial, Inc. (NYSE:PRU), which is headquartered in the
The joint venture is acquiring controlling stakes of the properties in
two separate transactions totaling €265 million, or a little more than
$361 million. The first transaction closed in April and the second is
expected to close in the second quarter, with Taurus remaining a
minority investor in both instances. Combined, the entire portfolio
comprises more than 200,000 square meters and 83 high yielding,
grocery-anchored properties throughout Germany. Key tenants include such
large German food retailers as REWE, Aldi, Lidl, Netto, NORMA and Tegut.
The portfolio has centers located across Germany, including in Bavaria
and Hesse, with properties near Munich, Frankfurt and Wiesbaden.
“The German market offers good prospects for retailers amid low
unemployment, low household debt and rising wages,” said Sebastiano
Ferrante, PREI’s head of Germany, where the company operates as
Pramerica Real Estate Investors. “Grocery-anchored retail properties
continue to fill a critical need in the market, despite the growth of
online sales, leading some retailers to expand and providing our
investors with attractive opportunities. We are delighted to partner
with AP3 in this important Eurozone market.”
Klas Akerback, senior portfolio manager at AP3, added, “We see a
potential for attractive risk-adjusted returns in established German
regional grocery-anchored retail, as the tenants are strong companies
and existing sites will benefit because stricter planning rules make new
construction difficult. I am very pleased to be working on this
investment with Pramerica’s experienced team.”
Lorenz Reibling, founder and partner at Taurus, said: “We are pleased to
have found a strong and experienced partner that enables us to continue
Taurus Euro Retail Funds I & II, and are looking forward working with
Pramerica and AP3. We share their positive outlook on the German retail
real estate sector.”
AP3 is one of five so-called buffer funds within the Swedish national
pension system. AP3 manages a diversified global portfolio of listed
equities, fixed income assets and alternative investments. Alternative
investments consist of private equity, real estate, timberland,
infrastructure assets and new strategies. The value of AP3's portfolio
stood at SEK 258.5 billion on 31 December 2013.
Taurus Investment Holdings, LLC, is a real estate private equity firm
founded in 1976 that acts as an owner, developer, operator and
co-investor active in 30 markets around the world. Taurus was founded in
Munich and is currently headquartered in Boston, MA. Taurus, together
with its international private investors and strategic joint venture
partners, leverages its local market proficiency and performance record
to capitalize on select investment opportunities. Since inception,
Taurus has acquired and sold more than 2 million square meters of
residential, office, industrial, retail and other real estate assets.
The investments under management are distributed globally and encompass
an acquisition value of over 3 billion USD. For more information please
PREIis a leader in the global real estate investment management
business, offering a broad range of investment vehicles that invest in
private and public market opportunities in the United States, Europe,
the Middle East, Asia, Australia and Latin America. Headquartered in
Madison, N.J., the company also has offices in Atlanta, Chicago, Miami,
New York, San Francisco, Frankfurt, Lisbon, London, Luxembourg, Munich,
Paris, Abu Dhabi, Mexico City, Sao Paulo, Hong Kong, Seoul, Singapore,
Sydney and Tokyo. In addition, PREI has representatives in Milan.
Prudential Real Estate Investors had gross assets under management of
USD $55.8 billion ($41.8 billion net), as of March 31, 2014. For more
information, visit http://www.prei.com.
Prudential Financial, Inc. (NYSE:PRU), a financial services leader with
more than $1.1 trillion of assets under management as of March 31, 2014,
has operations in the United States, Asia, Europe, and Latin America.
Prudential’s diverse and talented employees are committed to helping
individual and institutional customers grow and protect their wealth
through a variety of products and services, including life insurance,
annuities, retirement-related services, mutual funds and investment
management. In the U.S., Prudential’s iconic Rock symbol has stood for
strength, stability, expertise and innovation for more than a century.
For more information, please visit www.news.prudential.com.
Prudential Financial, Inc.
Source: Prudential Financial, Inc.