Key Takeaways
- • PGIM Real Estate completed a record $42.7 billion in transactions globally in 2021, up 43% from the prior year, with $35 billion of that in the U.S., up 38%.
- • U.S. logistics was the largest driver, with $5.6 billion across 99 logistics transactions tied to e-commerce growth, including a $440 million acquisition of Bayonne Logistics Center for its core fund.
- • The firm lent $1.9 billion to the affordable housing sector over the past year and invested $1.6 billion in senior living in 2021.
- • PGIM Real Estate completed $3.0 billion in 68 transactions in Asia-Pacific and $4.7 billion in 76 transactions in Europe, across debt and equity.
- • The firm completed more than $1.4 billion of debt and equity investments across 22 U.S. office transactions in 2021, prioritizing ESG credential upgrades.
Summary
PGIM Real Estate, the $209.3 billion real estate business of PGIM, completed a record $42.7 billion in transactions globally in 2021, up 43% from 2020, according to the firm's announcement distributed via Business Wire. The U.S. accounted for $35 billion of the total, up 38% year over year. Asia-Pacific saw $3.0 billion across 68 transactions and Europe $4.7 billion across 76 transactions, spanning both debt and equity.
The firm attributed its growth to four key pillars: digital transformation, generational changes in living habits driving demand for affordable housing, the aging population, and ESG credentials. Cathy Marcus, global chief operating officer and head of U.S. equity, said the firm's scale allows it to explore new ideas and trends across funds with different risk profiles. Bryan McDonnell, head of U.S. Debt and chair of Global Debt, said the firm's global lending reach helps it identify capital market movements and regional real estate trends.
In logistics, PGIM Real Estate completed $5.6 billion across 99 U.S. transactions, including a $440 million acquisition of Bayonne Logistics Center, a 115-acre site on the Upper New York Bay, on behalf of its core fund, and a $250 million fixed-rate financing of a last-mile core logistics portfolio of five properties across Atlanta, Dallas-Fort Worth, Chicago, Memphis and California's Central Valley. In affordable housing, the firm pursued a joint venture with Legacy Communities for a national manufactured home communities portfolio, disposed of a five-property manufactured housing portfolio across Florida, Ohio and Massachusetts, and lent $1.9 billion to the sector as a Government-Sponsored Enterprise, Agency and FHA lender.
PGIM Real Estate invested $1.6 billion in senior living in 2021, including a $78 million development of Holden Delray Beach, a 187-unit independent living, assisted living and memory care project in Florida managed by The Arbor Company, its largest operator partner. On ESG, the firm committed to net zero operational carbon for its managed global portfolio by 2050 and is developing a 220,000-square-foot, carbon-neutral office building in Bellevue, Washington, with a big tech tenant already signed, targeting LEED Gold and LEED Zero certification.
The firm attributed its growth to four key pillars: digital transformation, generational changes in living habits driving demand for affordable housing, the aging population, and ESG credentials. Cathy Marcus, global chief operating officer and head of U.S. equity, said the firm's scale allows it to explore new ideas and trends across funds with different risk profiles. Bryan McDonnell, head of U.S. Debt and chair of Global Debt, said the firm's global lending reach helps it identify capital market movements and regional real estate trends.
In logistics, PGIM Real Estate completed $5.6 billion across 99 U.S. transactions, including a $440 million acquisition of Bayonne Logistics Center, a 115-acre site on the Upper New York Bay, on behalf of its core fund, and a $250 million fixed-rate financing of a last-mile core logistics portfolio of five properties across Atlanta, Dallas-Fort Worth, Chicago, Memphis and California's Central Valley. In affordable housing, the firm pursued a joint venture with Legacy Communities for a national manufactured home communities portfolio, disposed of a five-property manufactured housing portfolio across Florida, Ohio and Massachusetts, and lent $1.9 billion to the sector as a Government-Sponsored Enterprise, Agency and FHA lender.
PGIM Real Estate invested $1.6 billion in senior living in 2021, including a $78 million development of Holden Delray Beach, a 187-unit independent living, assisted living and memory care project in Florida managed by The Arbor Company, its largest operator partner. On ESG, the firm committed to net zero operational carbon for its managed global portfolio by 2050 and is developing a 220,000-square-foot, carbon-neutral office building in Bellevue, Washington, with a big tech tenant already signed, targeting LEED Gold and LEED Zero certification.
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