PGIM Real Estate’s European Core Plus strategy has raised over US$400 million in less than six months after inception of the new vehicle. PGIM Real Estate is the US$204.4 billion real estate investment management business of PGIM.
The open-ended strategy seeks to acquire real estate assets combining strong sustainable yield and value creation potential over time to maximize returns. The focus on value creation places active asset management and dedicated ESG risk management at the centre of the strategy.
Jocelyn de Verdelon, senior portfolio manager of the European Core Plus strategy, said: “In this high inflation environment and amid market dislocations, investors increasingly want strategies that are able to distribute sustainable income and generate alpha. Our European Core Plus strategy aims to do just that, by focusing on high conviction investment themes across the true core-plus universe to deliver growing income combined with value creation. Our experience in alpha-driven strategies provides a strong platform to create another high-quality vehicle that aims to capture compelling investment opportunities in Europe.”
The strategy targets Europe’s most liquid markets, allocating to sectors benefiting from structural trends driven by digitalization, changing demographics and decarbonization. Focusing on these high-conviction themes, the strategy will invest in sectors such as last mile logistics; residential including rental, senior and student housing; and new generation of office. The strategy will also target tactical opportunities in mispriced sectors, such as hotels or self-storage.
With local expertise across asset management and transactions in six countries, the strategy is managed by a dedicated pan-European team, led by Verdelon, senior portfolio manager and head of transactions, Europe and senior portfolio manager, Tobias Waldschmidt.
This strategy is key to PGIM Real Estate’s European core plus offering, through which the team has invested more than €1.8bn in previous vehicles, including two closed end funds; PGIM Real Estate Pan European Real Estate Fund (PEREF) I and II, both closed to new investors. The PEREF series has consistently outperformed its total return targets since inception*.
*Past performance is not a guarantee nor a reliable indicator of future results
Core Plus Equity
Investment strategies targeting high-quality, income-producing core plus real estate across the U.S., Europe and Asia.
Meet the Team
Jocelyn de Verdelon
Jocelyn de Verdelon
Managing Director, Head of France, Spain and Portugal