PGIM Real Estate Finance provides nearly USD15bn in financing in 2017
PGIM Real Estate Finance originated USD14.8 billion in financing in 2017 led by production in multifamily and industrial lending. PGIM Real Estate Finance is the commercial mortgage finance business of PGIM, the USD1 trillion global investment management businesses of Prudential Financial.
The company also announced it has as much as USD15 billion available for financing in 2018 and will look to target growth in international markets, agency business on the West Coast of the United States, industrial lending in primary markets and core plus opportunities in secondary markets.
PGIM Real Estate Finance’s overall debt lending and agriculture investment production increased 6 per cent over its prior-year totals, including a 12 per cent increase year over year in the fourth quarter. The increases were broad-based and included significant growth in the company’s general account international, institutional investor and agency businesses.
2017 financing highlights include: USD13.3 billion in US multifamily, industrial, office, retail and other sectors, including more than USD4.5 billion in conventional and affordable multifamily loans on behalf of Fannie Mae, Freddie Mac and FHA; USD770 million in agricultural debt; and USD184 million in core-plus financing, a new strategy launched in the third quarter; and USD1.5 billion in international markets such as Australia, Canada, Japan, the UK and other European nations.
“Our 2017 production totals were driven by our continued excellence in multifamily lending and bolstered by industrial opportunities that are taking advantage of the e-commerce tailwind,” says David Durning, chief executive officer of PGIM Real Estate Finance. “Looking to 2018, we hope to take advantage of our international platform to seek out attractive lending opportunities in markets such as the UK, pan-Europe and Australia. With transaction volumes correlated closely with financing activity and the US investment sales market slowing, our international and non-traditional market lending will play a key growth role in 2018.”