PGIM Real Estate completes USD12 billion in 2018 transactions worldwide
PGIM Real Estate completed approximately USD12 billion in transactions worldwide in 2018 on behalf of institutional and high net worth investors, including investments in real estate equity and debt, and property dispositions.
“PGIM Real Estate’s 2018 transactions reflect our ability to successfully identify assets that offer attractive income streams and sources of growth to deliver target returns for our clients over the long term, as well as assets that offer capital protection and are in locations that will fare well through a downturn,” says Eric Adler, chairman of PGIM’s real estate businesses and chief executive officer of PGIM Real Estate. “We capitalised on sources of growth through market-level growth opportunities, active asset management strategies, favourable structure trends, and value sectors and locations around the world, while continuing to selectively sell stabilised, non-strategic properties.”
The USD12 billion total was across 216 transactions, spanning the Americas, Europe and Asia Pacific regions. Highlights include approximately: USD8.0 billion through 135 US transactions; USD2.4 billion through 56 European transactions; USD1.4 billion through 10 transactions across Asia Pacific; and USD200 million through 15 Latin American transactions.
“While there is a sense of caution among global real estate market participants – reflecting concerns about elevated real estate pricing, a perceived lack of available stock and heightened political uncertainty – capital is still targeting the sector and transactions activity remains stable,” says Adler. “As investors seek to achieve an optimal mix of offence and defence in their portfolios, we are well-positioned to employ our disciplined and globally integrated investment approach to capitalise on the resulting opportunities around the world. These include supply-constrained markets and non-traditional real estate sectors with structural growth potential, as well as debt investments that can offer reduce risk exposure.”