PGIM deals target European demand for non-bank lending

US-based Prudential’s subsidiary PGIM Real Estate is providing finance for logistics and residential private rented sector portfolios in the Netherlands. It has advanced €56 million for the acquisition and refinance of seven freehold logistics assets across the Netherlands totalling 115,000 sq m. It has also provided €105 million, to refinance the development of a PRS portfolio, in Amsterdam and Eindhoven.

Foolen & Reijs Vastgoedgroep’s Eindhoven PRS property.

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 PRS portfolio, owned by Foolen & Reijs Vastgoedgroep, includes a 13-storey mixed-use property in Amsterdam comprising 195 residential units and a property in Eindhoven with 437 residential units in a renovated building. The seven-year fixed-rate senior loan is a co-investment between PGIM Real Estate and ABN Amro, which arranged the loan.

Housing undersupply buoys up strength of demand

The demand for housing in Amsterdam and Eindhoven remains strong, driven primarily by the longstanding undersupply of housing that exists in these cities, PGIM Real Estate said in a statement.

“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,” said PGIM Real Estate’s executive director for continental debt origination, Frankfurt-based David Gingell.

PGIM Real Estate, the real estate investment business of US-based PGIM, part of Prudential Financial, has European lending capacity across its debt platform of more than $6 billion AUM, including a $5 billion AUM senior loan portfolio .

Historically the business has been managed from London, but the firm said that as demand for non-bank lenders has intensified on the Continent it has established a presence in Frankfurt.

“Senior debt lending in the UK and Continental Europe continues to present attractive investment opportunities for non-bank lenders,” said Andrew Macland, head of European Debt.