Key Takeaways
- • PGIM Real Estate completed nearly US$30 billion in transactions worldwide in 2020 across 911 transactions, according to a Business Wire press release dated February 8, 2021.
- • The total comprised $10.2 billion in equity investments and dispositions for third-party investors and $19.5 billion in real estate financing.
- • The Americas accounted for approximately $25.3 billion across 835 transactions, Europe $3.3 billion across 53 transactions, and Asia Pacific $1.0 billion across 23 transactions.
- • PGIM Real Estate reported a record $9.6 billion in U.S. agency multifamily production volume across 468 loans in 2020, and said it has as much as $20 billion available for real estate financing in 2021.
- • CEO Eric Adler said the firm entered the pandemic with exceptional strength and liquidity, and that its debt business gained market share as banks faced further regulatory constraints.
Summary
PGIM Real Estate, the real estate investment and financing business of PGIM, the $1.4 trillion global asset management arm of Prudential Financial, Inc. (NYSE: PRU), completed nearly US$30 billion in transactions worldwide in 2020, according to a company press release issued through Business Wire. The volume comprised 911 transactions, including $10.2 billion in equity investments and dispositions on behalf of third-party investors and $19.5 billion in real estate financing.
By region, the Americas accounted for approximately $25.3 billion across 835 transactions, split into $6.9 billion in equity and $18.4 billion in debt. Europe contributed $3.3 billion across 53 transactions ($2.4 billion equity, $898 million debt), and Asia Pacific contributed $1.0 billion across 23 transactions ($869 million equity, $169 million debt).
On the equity side, PGIM Real Estate acquired a 30-property U.S. industrial portfolio of 5.4 million square feet, valued at roughly $700 million, with Perlmutter Investment Company's IAC Properties for its U.S. core strategy. The firm also made its first UK acquisition for its European core strategy, a 123-unit multifamily rental property in High Wycombe, and bought a six-building, 353-unit multifamily portfolio in Tokyo and Yokohama valued at about $120 million for its Asia core strategy.
In debt, the firm's U.S. agency lending platform recorded a record $9.6 billion in multifamily production across 468 loans, earning a top five ranking from Fannie Mae. Core financing exceeded $7.0 billion across 143 loans globally, while core-plus financing totaled $536 million across seven transactions and agricultural production exceeded $1.5 billion.
CEO Eric Adler said COVID-19 brought challenges the firm could not specifically plan for, but that PGIM Real Estate had prepared for a market downturn for several years. He said the equity business used its liquidity to capitalize on accelerated trends such as e-commerce demand and suburban housing shifts in the U.S., while the debt business provided capital protection and benefited from banks' regulatory constraints. PGIM Real Estate reported US$182.5 billion in gross assets under management and administration as of the release, and said it has as much as $20 billion available for real estate financing in 2021.
By region, the Americas accounted for approximately $25.3 billion across 835 transactions, split into $6.9 billion in equity and $18.4 billion in debt. Europe contributed $3.3 billion across 53 transactions ($2.4 billion equity, $898 million debt), and Asia Pacific contributed $1.0 billion across 23 transactions ($869 million equity, $169 million debt).
On the equity side, PGIM Real Estate acquired a 30-property U.S. industrial portfolio of 5.4 million square feet, valued at roughly $700 million, with Perlmutter Investment Company's IAC Properties for its U.S. core strategy. The firm also made its first UK acquisition for its European core strategy, a 123-unit multifamily rental property in High Wycombe, and bought a six-building, 353-unit multifamily portfolio in Tokyo and Yokohama valued at about $120 million for its Asia core strategy.
In debt, the firm's U.S. agency lending platform recorded a record $9.6 billion in multifamily production across 468 loans, earning a top five ranking from Fannie Mae. Core financing exceeded $7.0 billion across 143 loans globally, while core-plus financing totaled $536 million across seven transactions and agricultural production exceeded $1.5 billion.
CEO Eric Adler said COVID-19 brought challenges the firm could not specifically plan for, but that PGIM Real Estate had prepared for a market downturn for several years. He said the equity business used its liquidity to capitalize on accelerated trends such as e-commerce demand and suburban housing shifts in the U.S., while the debt business provided capital protection and benefited from banks' regulatory constraints. PGIM Real Estate reported US$182.5 billion in gross assets under management and administration as of the release, and said it has as much as $20 billion available for real estate financing in 2021.
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