European Value-Add: Capitalizing on Opportunities in the Next Cycle

Executive Summary

The case for value-add in Europe today is supported by several factors.

  • European real estate values have gone through a significant correction, and, having stabilized in 2024, are set for a rebound in the coming years. Some parts of the market are set to rebound faster than others.
  • After a relatively subdued investment and building cycle, there are supply shortages, even in parts of the market with resilient demand. In addition, there is a need for capital to modernize existing stock and meet the growing ESG requirements of institutional investors.
  • The low liquidity market environment of today offers an attractive entry point as investors can selectively acquire assets below valuation and capture immediate upside.
  • The value-add opportunity set is expanding to sectors not traditionally seen as part of the investment landscape, including operationally intensive sectors that offer higher potential returns but require more specialist expertise to execute on.
PGIM Real Estate – Value-Add Equity

Investment strategies pursuing appreciation-driven returns, primarily through development & repositioning across the United States, Europe and Asia Pacific.

European Real Estate Capabilities

40 year investment heritage investing across the risk return spectrum in debt, equity and private equity strategies.