PGIM Real Estate continues to grow its European senior loan portfolio, providing financing for two portfolios in the Netherlands, one in logistics and the other in the residential private rented sector (PRS).
PGIM Real Estate has provided loans of €56 million for the acquisition and refinance of seven freehold logistics assets totaling 115,000 square meters across the Netherlands as well as a loan of €105 million, to refinance the development of a PRS portfolio, in Amsterdam and Eindhoven.
PGIM Real Estate is the real estate investment business of PGIM, theUS$1.3 trillion global investment management businesses of Prudential Financial, Inc. (NYSE: PRU).
Established in 2010, PGIM Real Estate’s European lending capability across its debt platform is over US$6 billion AUM, which includes a senior loan portfolio of
over US$5 billion AUM across the UK and Continental Europe*. PGIM Real Estate’s capabilities also include higher-yielding debt strategies, making it one of
the largest real estate debt fund lenders in Europe**. Historically the business has been managed from London, but with the demand for non-bank lenders
intensifying on the Continent, the group last year established an on-the-ground footprint in Frankfurt, Germany.
Andrew Macland, head of European Debt, commented, “Senior debt lending in the UK and Continental Europe continues to present attractive investment opportunities for non-bank lenders, such as PGIM Real Estate, with long-term trends and dynamics on display across a number of geographies and sectors. These deals are examples of our ability to identify interesting opportunities and continue to support sponsors even throughout the more challenging periods.”
David Gingell, executive director for Continental Debt Origination based in Frankfurt, commented, “These loans represent our commitment to write business
in markets with positive long term fundamentals, even when faced with short term uncertainty. The Netherlands is a resilient market and presents attractive opportunities as we continue to build exposure to logistics and PRS, encouraged by the increasing shift to online retail and continued undersupply of housing.”
The seven freehold logistics assets are located near Amsterdam and along the Rotterdam Ruhr corridor in the south of the Netherlands. The loan has an initial term of three years. The portfolio is let to six tenants, including large providers of transportation and logistics services and grocery delivery.
The two-asset portfolio, owned by Foolen & Reijs Vastgoedgroep, comprises a 13-story mixed-use property in Amsterdam composed of 195 residential units and a property in Eindhoven totaling 437 residential units within an attractive period property renovation. The seven-year fixed-rate senior loan is a co-investment between PGIM Real Estate and ABN Amro, who also arranged the loan. The demand for housing in Amsterdam and Eindhoven remains strong, driven primarily by the longstanding undersupply of housing that exists in these cities.
* All AUMs as at 30 June 2020
**Real Estate Capital: https://www.recapitalnews.com/europes-top-fundraisers/