PGIM Real Estate has acquired land in Munich, Germany, for the development of a data center.
The real estate investment management business of PGIM recently acquired a property in the north of the Munich region for its closed-end value-add fund European Value Partners (EVP) II.
The intention is to develop the property into a data center however, neither the terms of the deal nor the seller were shared.
The site is located in Unterschleißheim, between Munich city center and Munich Airport, and has 30MW of available power. The company didn’t include any timelines for development or any planned end user for the site.
Nabil Mabed, senior portfolio manager at European Value Partners, said: “The rapidly increasing demand for data centers, combined with the low supply and limited development opportunities in urban areas, represents a very attractive investment opportunity for long-term investors. Since the short-term development potential in Frankfurt is limited, the German data center market is increasingly focusing on Berlin and Munich.”
PGIM Real Estate has previously partnered with Equinix on a number of hyperscale developments and sold a California site earmarked for data center development to Amazon. The company previously owned a portfolio of US data centers alongside Digital Realty later sold to Menlo Equities.
NTT has a data center in Unterschleißheim that launched in 2017; nLighten, Portus, Equinix, NorthC, and EdgeConneX currently operate data centers around the Munich area.
DLA Piper acted as legal advisor to PGIM Real Estate for this deal.
