NEWARK, N.J.–(BUSINESS WIRE)–PGIM Real Estate has completed the fundraise for its first Global Data Center Fund (GDCF) with $2 billion of capital allocated to the strategy. PGIM Real Estate secured capital commitments for the GDCF from a range of global investors.
The Fund has a build-fill-sell investment strategy focused on the low latency hyperscale segment of the global data center sector, targeting opportunistic investment returns. Since its first close in July 2023, the GDCF has been developing a geographically diversified portfolio of assets targeting investments across the major global data center markets of North America, Asia Pacific and Europe. The Fund is managed by a global portfolio management team led by Global Head of Data Center Investments Morgan Laughlin and PGIM Real Estate has over a decade of experience investing in the sector.
The Global Data Center Fund strategy creates value through asset-level development joint ventures with leading data center operators. Retaining an operator-independent approach allows the Fund to access attractive investment opportunities in supply constrained markets through its deep range of operator relationships. ESG considerations are factored into each investment decision with a defined asset allocation to buildings with a green building certificate.
As well as raising capital amongst institutional investors, PGIM Real Estate entered into a distribution partnership with a leading global private bank to raise assets globally for the Fund.
Morgan Laughlin commented: “Successfully reaching our $2 billion target raise is an important milestone that reflects strong investor confidence in the sector and our strategy. Data centers are at the heart of the digital framework that is playing an increasingly critical role across our economy and society. In line with the recognition of the importance of digital infrastructure in our modern lives, global investors are rapidly increasing their exposure to the sector.”
To date, over $450 million of equity capital has been committed to data center investments across PGIM Real Estate, and GDCF retains a strong pipeline of opportunities that is expected to allow it to deploy the remaining capital within the next 18 months.
PGIM Real Estate co-CEO Raimondo Amabile commented: “Congratulations to the team on reaching the final close on our Global Data Center Fund. We see a significant opportunity to develop expertise in the data center space and create a wider digital infrastructure platform. Data centers, and other associated digital infrastructure, offer a generational investment opportunity as the digital demands of our societies and economies continue to expand at an astounding pace.”
ABOUT PGIM REAL ESTATE
PGIM Real Estate is the world’s third-largest real estate investment manager, with $206 billion in gross assets under management and administration,1 and real estate professionals located in 35 cities worldwide. Built on our belief that strong performance is fueled by dynamic expertise, our global network of on-the-ground specialists is dedicated to opportunity creation, optimization, and timely capital deployment amid shifting market conditions.
Through our full suite of real estate equity and debt solutions, we aim to achieve exceptional outcomes on behalf of investors and borrowers. Our uncompromising commitment to building lasting relationships with our clients is founded on trust, transparency, and mutual respect. We strive to integrate sustainable best practices throughout our investment, asset management, risk and talent management processes for the benefit of our clients, employees, and the communities in which we operate. PGIM Real Estate is a business of PGIM, the global asset management business of Prudential Financial, Inc. (NYSE: PRU). For more information visit pgimrealestate.com.
ABOUT PGIM
PGIM is the global asset management business of Prudential Financial, Inc. (NYSE: PRU). In 41 offices across 19 countries, our more than 1,450 investment professionals serve both retail and institutional clients around the world.
As a leading global asset manager with $1.38 trillion in assets under management,2 PGIM is built on a foundation of strength, stability, and disciplined risk management. Our multi-affiliate model allows us to deliver specialized expertise across key asset classes with a focused investment approach. This gives our clients a diversified suite of investment strategies and solutions with global depth and scale across public and private asset classes, including fixed income, equities, real estate, private credit, and other alternatives. For more information visit pgim.com.
Prudential Financial, Inc. (PFI) of the United States is not affiliated in any manner with Prudential plc, incorporated in the United Kingdom, or with Prudential Assurance Company, a subsidiary of M&G plc, incorporated in the United Kingdom. For more information please visit news.prudential.com.
