PGIM Real Estate completed nearly US$30 billion in transactions worldwide in 2020. The volume represents a total of 911 transactions, including US$10.2 billion in real estate equity investments and dispositions on behalf of third-party investors, and US$19.5 billion in real estate financing.
PGIM Real Estate is the real estate investment and financing business of PGIM, the US$1.4 trillion global investment management business of Prudential Financial.
“While Covid-19 brought on challenges in 2020 that we couldn’t have anticipated or specifically planned for, PGIM Real Estate has been preparing for a market downturn for the past several years,” says Eric Adler, president and chief executive officer of PGIM Real Estate. “We entered the pandemic from a position of exceptional strength and resiliency, with rigorous investment and operational risk infrastructure in place globally and considerable liquidity across our debt and equity businesses.”
The total transaction volume includes approximately $25.3 billion through 835 transactions in the Americas, composed of US$6.9 billion in equity and US$18.4 billion in debt; US$3.3 billion through 53 European transactions, composed of US$2.4 billion in equity and US$898 million in debt; and US$1.0 billion through 23 transactions across Asia-Pacific, composed of US$869 million in equity and US$169 million in debt.
Adler adds: “Our equity business had the liquidity needed to quickly capitalize on accelerated secular trends, such as surging e-commerce demand and a shift toward suburban housing in the US, on behalf of our investors this past year. Our debt business has provided our clients with capital protection and cashflow resilience and has benefited from an opportunity to gain market share – particularly for our agency lending platform – as banks face further regulatory constraints.”
In Asia-Pacific, PGIM Real Estate acquired a six-building multifamily portfolio located across Tokyo and Yokohama, Japan, valued at approximately US$120 million. The portfolio consists of newly completed mid-market residential buildings, with a total of 353 residential units, and is expected to benefit from population growth and the migration of young working adults to the major cities.