Pramerica and Panattoni form new EUR 80 million Western European joint venture
LONDON - Pramerica Real Estate Investors today announced that it has further increased its investment into the European logistics warehouse market through the formation of a new Western European joint venture with Panattoni Europe, and the expansion of its existing Central and Eastern Europe joint venture with Panattoni. Pramerica Real Estate Investors is European arm of the U.S.-based Prudential Financial, Inc.'s real estate investment management and advisory business.
The new Western European joint venture has a total investment capacity of approximately €80 million. It will target Class A logistics developments with a minimum area of approximately 10,000 square meters that are at least 50 percent pre-let, with a primary focus on Germany and France and is considering several projects, including at least one that could close as early as the first quarter. Pramerica has also increased the size of its existing Central and Eastern Europe logistics joint venture with Panattoni by a further €40 million, bringing the total investment capacity to €140 million. The venture has already closed three transactions since its inception in 2010, investing €33.4 million in three developments in Poland totalling 57,400 square metres of Class A logistics space. "The Western Europe JV allows us to build on the success we have already achieved in partnership with Panattoni in Central and Eastern Europe, particularly in light of its growing European presence and attractive conditions in certain markets," said Max Kreuter, portfolio manager, Pramerica Real Estate Investors. "This venture gives our investors access to opportunities that provide the potential for strong returns, particularly in Germany and France." Said Jean van Hecke, managing director for Panattoni Europe, "Pramerica has been an excellent joint venture partner, and has provided the financial backing and local market expertise for us to make the most of the significant demand for quality logistics warehousing that we are seeing across Europe."
"We have a proven track record in partnership with Pramerica," van Hecke continued, "and expect this to continue as we establish our new venture in Western Europe and build on our previous successes in Central and Eastern Europe."
About Panattoni Europe
Panattoni Europe is part of the Panattoni Development Company, one of the largest industrial developers in the world with offices in North America and Europe. During the past five years, the Company has developed approximately seven million square meters of new space globally, with approximately 840,000 square meters having been developed in Europe during the most recent two-year period. Among key tenants are companies such as Arvato Services Polska, Coty Cosmetics, DSV, H&M, Intermarche, Leroy Merlin, ND Logistics, Still, Schenker and Tesco. Panattoni Europe has its headquarters in the Netherlands with additional offices in the Czech Republic, France, Germany, Italy, Poland, Spain and the United Kingdom. For more information, please visit http://www.panattonieurope.com
About Pramerica Real Estate Investors
Pramerica Real Estate Investors is 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, Asia, and Latin America. Headquartered in Parsippany, N.J., Pramerica has offices in Atlanta, Chicago, New York, San Francisco, Miami, London, Lisbon, Madrid, Munich, Paris, Luxembourg, Istanbul, Singapore, Mexico City, Rio de Janeiro, Hong Kong and Tokyo along with representatives in Milan and Zurich. As of September 30, 2010, the company managed about $44.8 billion in gross real estate assets ($25.7 billion net) on behalf of more than 490 clients worldwide and ranks among the largest real estate investment managers. For more information, please visit http://www.pramericarei.com.
Pramerica Financial is a trade name used by Prudential Financial, Inc., a company incorporated and with its principal place of business in the United States, and its affiliates in select countries outside the United States. PFI (NYSE: PRU), a financial services leader with approximately $784 billion of assets under management as of December 31, 2010, has operations in the United States, Asia, Europe, and Latin America. PFI'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, investment management, and real estate services. In the U.S., the company's iconic Rock symbol has stood for strength, stability, expertise and innovation for more than a century. For more information, please visit http://www.news.prudential.com/ . PFI of the United States is not affiliated in any manner with Prudential plc, a company incorporated in the United Kingdom. In the United Kingdom and various other jurisdictions in Europe, all investment activities are carried out by representatives of Pramerica Investment Management Limited ("PIML") which is authorised and regulated by the Financial Services Authority. PIML is incorporated in England (Reg. No. 3809476) and its Registered Office is at Grand Buildings, 1-3 Strand, Trafalgar Square, London WC2N 5HR.