Public-Private Debt Convergence Puts the Squeeze on Smaller Managers
PGIM’s Phil Waldeck and Gabriel Rivera discuss the convergence of public and private credit in FundFire.
PGIM Real Estate and Pithos Capital launch self-storage venture in France
LONDON, 11 Dec. 2024 – PGIM Real Estate and Pithos Capital have launched a joint venture in France to acquire and reposition self-storage assets. PGIM Real Estate made the investment on behalf of its European value-add strategy. PGIM Real Estate is the $212 billion real estate investment firm of PGIM and the third-largest real estate firm globally1.
In 2024, PGIM Real Estate’s European value-add strategy has secured over €600 million of acquisitions, primarily across logistics and living in Europe’s major cities, as well as healthcare in the UK and hospitality in Southern Europe.
The joint venture aims to build a portfolio of self-storage assets across France. The venture will develop buildings from the buyout and the repositioning of existing assets; conversions of obsolete light industrial and retail assets; as well as greenfield developments. The venture will operate under the leading Swiss-based self-storage brand, Zebrabox. To date, this joint venture has secured six assets and has a strong pipeline of identified acquisitions. The French self-storage market is growing and supply-constrained, and presents a compelling opportunity to capture market momentum. As a leading self-storage investor and operator, Pithos Capital brings over 20 years of experience in the sector and expertise across private equity and real estate.
Nabil Mabed, head of France, Spain and Portugal and senior portfolio manager for the European value-add strategy, comments: “European self-storage has strong fundamentals with significant market growth potential, making a traditionally granular sector an attractive opportunity for institutional investors. Backed by highly experienced partners Pithos Capital and Zebrabox, we are convinced that France represents a great opportunity to create significant value in this sector and aggregate a compelling sizeable portfolio attractive for core real estate investors looking to diversify away from office and retail or specialised players looking for scale.”
Alexandre Hamaide, managing director and co-founder of Pithos Capital, comments: “Self-storage has historically outperformed other real estate asset classes even in the toughest of times, and the French market is very under-supplied versus comparable markets like the UK, presenting a compelling investment opportunity. Our investment proposition for Zebrabox is to build an institutional-grade French self-storage portfolio through a programmatic aggregation of assets in targeted geographical locations.”
ABOUT PGIM REAL ESTATE
With $212 billion in gross assets under management and administration2, PGIM Real Estate provides investors and borrowers access to a range of real estate equity, real estate debt, agriculture, and impact solutions across the risk-return spectrum. PGIM Real Estate is a business of PGIM, the global asset management business of Prudential Financial, Inc. (NYSE: PRU). PGIM Real Estate’s risk management approach, execution capabilities and industry insights are backed by a 50-year legacy of investing in commercial real estate, a 140-year history of real estate financing3, and the local experience of professionals in 32 cities globally. Through its investment, financing, asset management and talent management approach, PGIM Real Estate engages in practices that strive to ignite positive environmental and social impact, while pursuing activities that seek to strengthen communities around the world. For more information visit pgimrealestate.com.
ABOUT PGIM
PGIM is the global asset management business of Prudential Financial, Inc. (NYSE: PRU). In 42 offices across 19 countries, our more than 1,400 investment professionals serve both retail and institutional clients around the world.
As a leading global asset manager with US$1.4 trillion in assets under management4, PGIM is built on a foundation of strength, stability, and disciplined risk management. Our multi-affiliate model allows us to deliver specialised expertise across key asset classes with a focused investment approach. This gives our clients a diversified suite of investment strategies and solutions with global depth and scale across public and private asset classes, including fixed income, equities, real estate, private credit, and other alternatives. For more information, 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.
ABOUT PITHOS CAPITAL
With €330 million in gross assets under management, Pithos Capital is a Swiss-based dedicated real estate investment and management company with a pan-European presence. With more than 20 years’ experience in this sector, Pithos Capital’s team combines entrepreneurial roots with an institutional framework to source the best opportunities and yield superior performance in a fragmented real estate asset class. With a particular focus in self-storage, through both direct holdings and joint ventures, Pithos currently manages 61 self-storage assets (140,000 sqm) with operations in Switzerland, United Kingdom, Spain, and France with a gross asset value of CHF 350 million. Pithos’ capabilities extend to adjacent real estate vertical market segments encompassing logistics, light industrials, and residential and includes investments in real estate operating businesses. Pithos Capital maintains corporate offices in Geneva, London, Paris, and Luxembourg.
For media use only. All investments involve risk, including the possible loss of capital.
1 PGIM Real Estate is the third-largest real estate investment manager (out of 72 firms surveyed) in terms of global real estate assets under management based on Pensions & Investments’ “Largest Real Estate Investment Managers” list published October 2024. This ranking represents global real estate assets under management by PGIM Real Estate as of 30 June 2024. Participation in the ranking is voluntary, and no compensation is required to participate in the ranking.
2 As of 30 Sept. 2024. Net AUM is US$137 billion and AUA is US$47 billion.
3 Includes legacy lending through PGIM’s parent company, PFI.
4 As of 30 Sept. 2024.
© 2024 PGIM Real Estate is the real estate investment management business of PGIM, the principal asset management business of Prudential Financial, Inc. (“PFI”), a company incorporated and with its principal place of business in the United States. PGIM is a trading name of PGIM, Inc. and its global subsidiaries. PGIM, Inc. is an investment adviser registered with the U.S. Securities and Exchange Commission (the “SEC”). Registration with the SEC does not imply a certain level of skill or training. 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. Prudential, PGIM, their respective logos and the Rock symbol are service marks of PFI and its related entities. In the United Kingdom, information is issued by PGIM Private Alternatives (UK) Limited with registered office: Grand Buildings, 1-3 Strand, Trafalgar Square, London, WC2N 5HR. PGIM Private Alternatives (UK) Limited is authorised and regulated by the Financial Conduct Authority (“FCA”) of the United Kingdom (Firm Reference Number 181389). These materials are issued by PGIM Private Alternatives (UK) Limited to persons who are professional clients as defined under the rules of the FCA. In the European Economic Area (“EEA”), information is issued by PGIM Luxembourg S.A. with registered office: 2, boulevard de la Foire, L1528 Luxembourg. PGIM Luxembourg S.A. is authorised and regulated by the Commission de Surveillance du Sector Financier in Luxembourg (registration number A00001218) and operating on the basis of a European passport. In certain EEA countries, this information, where permitted, may be presented by either PGIM Private Alternatives (UK) Limited or PGIM Limited in reliance of provisions, exemptions, or licences available to either PGIM Private Alternatives (UK) Limited or PGIM Limited under temporary permission arrangements following the exit of the United Kingdom from the European Union. PGIM Limited and PGIM Private Alternatives (UK) Limited have their registered offices at: Grand Buildings, 1-3 Strand, Trafalgar Square, London WC2N 5HR. PGIM Limited is authorised and regulated by the Financial Conduct Authority (“FCA”) of the United Kingdom (Firm Reference Number: 193418). PGIM Private Alternatives (UK) Limited is authorised and regulated by the Financial Conduct Authority (“FCA”) of the United Kingdom (Firm Reference Number 181389). These materials are issued by PGIM Luxembourg S.A., PGIM Limited or PGIM Private Alternatives (UK) Limited to persons who are professional clients as defined in the relevant local implementation of Directive 2014/65/EU (MiFID II) and/or to persons who are professional clients as defined under the rules of the FCA. PGIM operates in various jurisdictions worldwide and distributes materials and/or products to qualified professional investors through its registered affiliates including, but not limited to: PGIM Real Estate (Japan) Ltd. in Japan; PGIM (Hong Kong) Limited in Hong Kong; PGIM (Singapore) Pte. Ltd. in Singapore; PGIM (Australia) Pty Ltd in Australia; PGIM Luxembourg S.A.; and PGIM Real Estate Germany AG in Germany. For more information, please visit pgimrealestate.com.
Media Contact
PGIM Real Estate
Providing investors and borrowers access to a range of real estate, agriculture, impact and private equity solutions across the risk-return spectrum.
Learn more
You may also like
PGIM Chairman David Hunt on Expanding Access to Private Alternatives
Hunt joined Bloomberg TV to reflect on his tenure at PGIM, the firm’s global growth, and the evolution of asset management during his career.
PGIM Real Estate provides $141M in floating-rate financing for affordable housing portfolio in the Bronx
This affordable housing portfolio comprises 2,021 units across 34 properties, totaling 2.1 million square feet, located in the northern Bronx.