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NEWARK, NJ–(BUSINESS WIRE)–Low interest rates, investors’ continued search for yield and strong acquisition activity continue to create a favorable environment for real estate finance and alternative lenders around the world, contributing to a record 22.38 billion in global issuance last year for PGIM Real Estate (NYSE: PRU).

The nearly 15% increase in financings year-on-year was driven by growth in bridge loans and PGIM Real Estate preferred shares, which was supported by strong market momentum in the residential and global logistics. PGIM Real Estate closed more than $2.9 billion in lending activity on behalf of its core-plus and value-added lending strategies, as well as a record $2.8 billion in agricultural loans. PGIM Real Estate was also very active with over $9.2 billion in stabilized core loans in the US, Europe and Asia-Pacific and had a strong year on behalf of US agencies and FHA with over $7.3 billion in funding. demonstrates our success in meeting the unique financing needs of borrowers, while providing our investors with global opportunities for return across the entire risk spectrum,” said Bryan McDonnell, Head of U.S. Debt and President of Global Debt. for PGIM Real Estate. “Over the past year, our continued efforts to move beyond our strong track record as a core and agency lender has really come to the fore and we continue to see strong opportunities across the risk spectrum. in the future.”

HIGHLIGHTS OF 2021 DEBT TRANSACTIONS:

  • United States, Industry, Preferred shares: A nearly $13 million preferred stock investment for the development of Falcon Parkway, a two-building, 638,520 square foot Class A speculative industrial warehouse located 45 miles north of Atlanta along the I- 85, the largest warehouse/distribution sub-market in the region.
  • USA, Life Sciences, Bridge: $99.235 million in floating rate bridging financing as part of its U.S. core-plus debt strategy to Invesco Advisers Inc. for the acquisition and lease of an industrial portfolio of six properties supporting the science industry life on Alameda’s Bay Farm Island.
  • United States, Senior Residence, Stabilized: A $250.4 million fixed-rate, cross-default, cross-guaranteed loan as part of a tiered financing package for Harrison Street Real Estate Capital’s acquisition of a 1,118-unit portfolio with assistance and memory care spread across California and Nevada.
  • Germany, Office, Stabilized: A 76.95 million euro ($91.9 million) 7-year fixed-rate loan to Pembroke to refinance the Altstadt Palais, a fully-leased, fully-leased Class A multi-tenant office with three well-established law firms in Munich.
  • UK, Cold Warehouse, Preferred Shares: A £65 million 5 year senior capital facility and £67 million senior bridge loan for Magnavale to fund the refurbishment of four existing cold storage warehouses across the UK and the development of a state-of-the-art automated refrigeration system. storage facility.
  • Japan, Self-Storage, Stabilized: $375 million advanced on three loans with terms of 7 years, 10 years and 13 years to refinance a portfolio of 58 self-storage assets located throughout Japan, totaling 86,350 square meters. Approximately 77% of assets are located in the Tokyo metropolitan area and approximately 80% of assets are stabilized.
  • Australia, Affordable, Bridge: A $55 million loan to refinance a portfolio of 22 budget accommodation assets located across Australia. The facility included a working capital and prepaid interest component and was structured as a 5-year facility to allow both resumption of operations and refinancing prior to maturity.

“Looking forward, in the United States, we expect Fed interest rate hikes to shift recent preferences from shorter floating rate debt to longer term fixed rate debt. term, while recent increases in values ​​should increase opportunities to extract equity through mezzanine or preferred equity structures,” McDonnell said. “Trends are similar outside the United States, where Global markets are facing inflationary pressures and this should support the continued growth in market penetration of alternative lenders that has been occurring for several years.”

ABOUT PGIM IMMOBILIER

As one of the largest property managers in the world with $209.3 billion in gross assets under management and administration,1 PGIM Real Estate strives to deliver exceptional results to investors and borrowers through a range of real estate equity and debt solutions across the risk-return spectrum. PGIM Real Estate is a business of PGIM, the $1.4 trillion global asset management business of Prudential Financial, Inc. (NYSE: PRU).

PGIM Real Estate’s rigorous risk management, transparent execution and deep industry knowledge are backed by a 50-year legacy of commercial real estate investing, a 140-year history of real estate finance,2 and the deep local expertise of professionals in 32 cities around the world. Through its approach to investing, financing, asset management and talent management, PGIM Real Estate engages in practices that generate positive environmental and social impact, while pursuing activities that strengthen communities at worldwide. For more information, visit pgimrealestate.com.

ABOUT PGIM

PGIM, the global asset management business of Prudential Financial, Inc. (NYSE: PRU), ranks among the 10 largest asset managers in the world3 with over $1.4 trillion in assets under management as of March 31, 2022. With offices in 17 countries, PGIM’s business provides a range of investment solutions for retail and institutional investors worldwide across a wide range of asset classes, including public fixed income, private fixed income, fundamental equities, quantitative equities, real estate and alternatives. For more information on PGIM, visit pgim.com.

Prudential Financial, Inc. (PFI) of the United States is in no way affiliated with Prudential plc, incorporated in the United Kingdom, or Prudential Assurance Company, a subsidiary of M&G plc, incorporated in the United Kingdom. For more information, please visit news.prudential.com.

1 As of December 31, 2021. AUM reflected as gross. Net AUM is $137.9 billion and AAU is $45.9 billion.

2 Includes loans inherited through PGIM’s parent company, Prudential Financial, Inc.

3 PGIM is the investment management business of Prudential Financial, Inc. (PFI); PFI is the 10th largest investment manager (out of 477 companies surveyed) by global assets under management based on Pensions & Investments’ Top Fund Managers list published on May 31, 2021. This ranking represents assets under management by PFI as of December 31, 2020.

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