PGIM Real Estate has acquired an office property in Germany that is being transformed into apartments.
PGIM Real Estate has invested an unspecified amount to acquire the office property in Berlin-Kreuzberg on behalf of its European value-add strategy from PIMCO Prime Real Estate on behalf of Allianz.
The asset, which is part of the Markgrafenpark building complex, is expected to be converted into over 300 apartments.
The deal also marks the first completed transaction for Omniliv, PGIM’s new residential platform focused on developing and redeveloping micro-living properties for students and young professionals in Germany’s major cities.
Nabil Mabed, senior portfolio manager of the European value-add strategy at PGIM Real Estate, said: “In large cities around Europe, there is a massive demand for apartments adapted to the needs of the young generations.
“By converting obsolete office buildings which are no longer in demand, we combine developing valuable living space in prime locations with generating attractive returns for our investors.”
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