has bought a vacant office building in Frankfurt with plans to redevelop it with local developer FGI.
The fund manager has bought Junghof Plaza in a joint venture with FGI from an open-ended fund managed by Commerz Real.
The 14,349sqm building, in the banking quarter, was built in 2003, a year after Commerz Real鈥檚 HausInvest fund bought it as a construction project for more than 鈧�300m, according to reports at the time.
, the investment management business of US insurer Prudential Financial, plans to redevelop it into modern office space with two inner courtyards, retail space with food and beverage outlets, and hotel use.
Sebastiano Ferrante, head of Germany and Italy at PGIM Real Estate, said: 鈥淛unghof Plaza provides an ideal opportunity to create value for our investors through redevelopment and asset repositioning.
鈥淲e believe current and future rental values will be supported by strong fundamentals and the asset鈥檚 location in Frankfurt鈥檚 city centre.鈥�
The deal comes on the same day that it was revealed that building in Frankfurt, and soon after PGIM to Quantum.
Mario Sch眉ttauf, fund manager of HausInvest, said: 鈥淲e wanted to lower the fund鈥檚 Frankfurt share to diversify our portfolio and took advantage of the increasing demand for core property.鈥�
