Real Estate

Prudential Real Estate Investors to Rename to PGIM Real Estate Globally

On May 10, 2016

Prudential Real Estate Investors, based out of Madison and currently operates globally under two different names, today announced that it will consolidate under one brand name to support its globally diversified investment platform and client base. Effective May 16, 2016, it will rename to PGIM Real Estate in all the markets in which it operates.

The company currently operates as Pramerica Real Estate Investors outside of the Americas, Japan and Korea. With more than $65 billion in gross assets under management, as of March 31, 2016, across the Americas, Europe and Asia Pacific, PREI is the real estate investment management business of PGIM, the global investment management businesses of Prudential Financial, Inc. (NYSE: PRU). PGIM is one of the world’s largest asset managers, with more than $1 trillion in assets under management as of March 31, 2016.

“For more than a decade, we have operated under two names. As our client base and investment activities have become more globally diversified, unifying our business under one name will allow us to simplify how our clients and partners interact with us in multiple geographies,” said Eric Adler, chief executive officer of PREI. “Adopting a single name underscores that we are one, integrated global real estate investment manager.”

To highlight the growing global nature of the business, during the last decade the number of countries in which PREI’s clients are domiciled has increased nearly fourfold and today spans 28 countries. Notably, capital commitments from non-US clients into PREI’s core, core plus, value-add and high-yield debt strategies comprised approximately half of its new business during the last five years.

Adler continued: “In recent years, as institutions have been under-invested in real estate versus their target allocations, we have seen capital flowing across borders into our regional and country real estate strategies. We believe this trend will continue as investors seek attractive and diversified investment opportunities outside their domestic markets.”

Since 2014, more than one-third of capital raised by PREI has originated from global investors committing capital to real estate investment strategies that invest outside their home markets. Notably:

  • Two-thirds of PREI’s Asia Pacific clients have invested in U.S. real estate strategies.
  • Nearly half of PREI’s European clients have committed capital to U.S., Asia Pacific and Latin American real estate strategies, with nearly one third investing specifically in Asia Pacific.

The PGIM Real Estate name was chosen in conjunction with Prudential Investment Management’s name change to PGIM in January 2016. PGIM is one of the world’s largest asset managers with deep expertise across a broad set of asset classes. PGIM’s businesses, including PREI, operate in 16 countries on five continents and offer a range of products across asset classes, including public and private fixed income, real estate debt and equity, and fundamental and quantitative public equities. PGIM operates through a unique multi-manager model, with each asset class managed by a dedicated leadership team responsible for investment and business performance, while adhering to the same global standards for controls, risk management and compliance.

PGIM is the largest real estate investment manager in the world (according to Pensions & Investments Real Estate Manager Survey – October 2015) and had approximately $150 billion in combined gross assets under management and administration across real estate equity, debt and securities as of March 31, 2016. In addition to PREI renaming to PGIM Real Estate, PGIM’s global commercial and agricultural real estate finance business will rename to PGIM Real Estate Finance in 2016.