Pru's CRE Lending Arm Takes New Name

David Durning, CEO of PGIM Real Estate Finance

NEWARK, NJ—Following the example of Prudential Financial’s equity real estate investment business, Prudential Mortgage Capital Co. has rebranded across the globe as PGIM Real Estate Finance, the name it adopted for markets outside the US early last year. The new name unifies the company’s 22 offices around the world while reflecting its globally diversified business and clients.

“Having a single name better reflects how we provide financing around the world from a range of capital sources, and offer investors access to high quality opportunities,” says CEO David Durning. “In 2016, our clients increasingly looked to us for advice, relying on our ability to finance projects through a variety of loan products that enhance investors’ opportunities as they seek yield, while navigating globally uncertain markets.”

In the course of providing clients with advice, PGIM Real Estate Finance provided them with a total of more than $13.9 billion in financing last year. That included $13.2 billion across the North American multifamily, office, industrial and other sectors, a sizable portion of which was nearly $4.1 billion in conventional and affordable multifamily loans on behalf of Fannie Mae, Freddie Mac and FHA; and nearly $750 million across Europe, Japan and Australia. With some $788 billion in assets under management and administration as of this past Dec. 31, the company has as much as $15 billion to lend this year.

PGIM Real Estate Finance is a component of Prudential Financial’s trillion-dollar global investment management business, PGIM, which adopted that name in January of ’16. Another arm of PGIM is its PGIM Real Estate, formerly known as Prudential Real Estate Investors but known by its current moniker since this past May. That business completed more than $12 billion in transactions worldwide on behalf of investors last year, Prudential announced earlier this month.

“During a year marked by market volatility and political uncertainty, PGIM Real Estate’s transactions in 2016 reflect our ability to successfully identify cyclical momentum and growth potential in the short term, and invest into longer-term structural trends that offer attractive pricing opportunities around the world,” says Eric Adler, the business’ CEO. He notes that “the economic backdrop for real estate investment remains largely supportive” despite continuing market uncertainty.

Eric Adler, CEO of PGIM Real Estate

“As markets and geopolitical events evolve, we will employ our disciplined investment approach to capitalize on income-driven core opportunities in major markets alongside targeting value-add strategies, alternative real estate sectors and select emerging markets,” says Adler. We will also continue to selectively sell stabilized, non-strategic properties.”

The US and Europe accounted for most of PGIM Real Estate’s activity in ’16, including more than $8 billion through 120 transactions in this country and another $2.5 billion across 70 European deals. Another $1 billion was accounted for approximately $1 billion of Asia Pacific transactions, primarily in Japan, China, South Korea and Malaysia, while $400 million of transactions occurred in Latin America, primarily Mexico.

The global tally included more than $700 million invested through debt strategies, primarily across the UK, Germany and the US. On a sector-by-sector basis, both the US and Europe were led by investments in office and multifamily.