Prudential Financial's PGIM Real Estate completed more than $12 bn (€11 bn) in transactions worldwide on behalf of investors in 2016, including about $2.5 bn (€2.3 bn) in Europe, the company has announced.
'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,' said Eric Adler (pictured), CEO of PGIM Real Estate.
The more than $12 bn across 220 transactions in 2016 spanned the Americas, Europe and Asia-Pacific regions, including investments in real estate equity and debt as well as property dispositions. The US topped the transactions chart with more than $8 bn (€7.5 bn).
In Europe, the UK, Germany and France were PGIM Real Estate's biggest markets. Most of the 53 European acquisitions targeted office, multifamily and retail sectors, as PGIM Real Estate focused on value-add opportunities resulting from market dislocation, a cyclical recovery and ongoing structural trends in the region.
In addition, PGIM Real Estate provided approximately $500 mln (€470 mln) in financing across 18 transactions, primarily in Germany and the UK, including preferred equity provided for student housing and mezzanine facilities to support office and retail assets.
'Despite continued market uncertainty, the economic backdrop for real estate investment remains largely supportive,' Adler added. '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. We will also continue to selectively sell stabilized, non-strategic properties,' he concluded.