PGIM: Plan sponsors look to OCIO managers for institutional investment expertise
New research from PGIM sheds light on the use of outsourced chief investment officers (OCIOs) by defined contribution (DC) plan sponsors.
MADISON, N.J., Sept. 23, 2020 – On behalf of its U.S. core real estate strategy, PGIM Real Estate has acquired a 30-property industrial portfolio totaling 5.4 million square feet in partnership with Perlmutter Investment Company’s IAC Properties. PGIM Real Estate acquired the portfolio valued at approximately $700 million by recapitalizing an interest in the existing joint venture structure. PGIM Real Estate is the real estate investment and financing business of PGIM, the $1.4 trillion global investment management businesses of Prudential Financial, Inc. (NYSE: PRU).
Located across Los Angeles, the Greater Chicago area, Seattle, Dallas-Fort Worth, and Louisville, Kentucky, the portfolio is 97% leased and offers users access to key national and regional distribution hubs with robust infrastructure and favorable demographics trends.
“Fundamentals in each of the markets across this portfolio were exceptionally strong heading into 2020,” said Cathy Marcus, global chief operating officer and head of U.S. equity for PGIM Real Estate. “Despite the near-term impacts of COVID-19, we’re seeing continued growth in the U.S. industrial sector and particularly in these high barrier-to-entry locations. We expect that this portfolio will outperform the national forecast over the long term.”
PGIM Real Estate owns more than 107 million square feet of industrial space globally and more than 45 million square feet in the U.S. In the third quarter of 2020, the firm has added 49 best-in-class industrial properties totaling 12.3 million square feet to its U.S. core real estate fund specifically, further strengthening its asset allocation position. Most recently, PGIM Real Estate announced the $425 million acquisition of a 15-building industrial portfolio located across eight properties in Atlanta, Dallas, Denver, Fort Worth, and Phoenix on behalf of its core fund.
“We were an early investor in the U.S. industrial market and the COVID-19 crisis has accelerated many of the e-commerce-driven trends that were already in place and that initially made us bullish on the sector,” said Frank Garcia, managing director and senior portfolio manager for PGIM Real Estate’s U.S. core strategy. “Through this acquisition and other large transactions this quarter, we’ve been able to very efficiently deploy capital into the market and have strengthened our commitment to the sector as a result.”
Todd Goldberg, managing director, Steven Oliveira, executive director, and Kevin Interlicchio and Laura Nugent, associate vice presidents, of PGIM Real Estate’s Transactions team led the portfolio acquisition on the firm’s behalf.
About PGIM Real Estate
As one of the largest real estate managers in the world with $182.0 billion in gross assets under management and administration,1 PGIM Real Estate strives to deliver exceptional outcomes for 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, seamless execution, and extensive industry insights are backed by a 50-year legacy of investing in commercial real estate, a 140-year history of real estate financing,2 and the deep local expertise of professionals in 32 cities globally. Through its investment, financing, asset management, and talent management approach, PGIM Real Estate engages in practices that ignite positive environmental and social impact, while pursuing activities that strengthen communities around the world. For more information visit pgimrealestate.com.
PGIM, the global asset management business of Prudential Financial, Inc. (NYSE: PRU), ranks among the top 10 largest asset managers in the world3 with more than $1.4 trillion in assets under management as of June 30, 2020. With offices in 16 countries, PGIM’s businesses offer a range of investment solutions for retail and institutional investors around the world across a broad range of asset classes, including public fixed income, private fixed income, fundamental equity, quantitative equity, real estate and alternatives. For more information about PGIM, visit pgim.com.
Prudential Financial, Inc. (PFI) of the United States is not affiliated in any manner with Prudential plc, incorporated in the United Kingdom or with 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 June 30, 2020, net AUM is $120.4 billion and AUA is $39.3 billion.
2 Includes legacy lending through PGIM’s parent company, PFI.
3 Pensions & Investments’ Top Money Managers list, June 1, 2020; based on PFI total worldwide assets under management as of March 31, 2020.
For Professional Investors only. All investments involve risk, including the possible loss of capital.
PGIM is the primary asset management business of Prudential Financial, Inc. (PFI). PGIM Real Estate is PGIM’s real estate investment advisory business and operates through PGIM, Inc., a registered investment advisor. Registration as a registered investment advisor does not imply a certain level or skill or training. Prudential, Pramerica, PGIM, their respective logos as well as the Rock symbol are service marks of PFI and its related entities, registered in many jurisdictions worldwide. Prudential Financial, Inc. of the United States is not affiliated in any manner with Prudential plc, incorporated in the United Kingdom or with Prudential Assurance Company, a subsidiary of M&G plc, incorporated in the United Kingdom.