PGIM Real says it will target investments globally after completing a $2-billion fundraise for its first global data centre fund.
The world’s third-largest real estate investment manager would deploy the fund across North America, the Asia-Pacific and Europe, it said.
It plans to create asset-level development joint ventures with data centre operators to focus on opening up constrained markets.
Fund manager Morgan Laughlin said institutional investors and a partnership with a leading global bank had contributed to the fundraising strategy.
“Successfully reaching our $2-billion target raise is an important milestone that reflects strong investor confidence in the sector and our strategy,” Laughlin said.
“Data centres 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.”
The US-based real estate firm has $206 billion in assets under management globally, including two recent Australian acquisitions.
In February PGIM Real Estate and Anton Real Estate Partners paid $250 million for the former home of Sydney’s ASX, Exchange Centre at 20 Bridge Street, in the Sydney CBD.
The same month PGIM joined KM Property to buy a 9.6ha industrial site at Yatala, midway between Brisbane and the Gold Coast.
Laughlin said data centre investment was particularly attractive in the short term.
“The opportunity to make attractive risk-adjusted returns in data centre development is going to have a long run, underpinned by expansive demand for these assets and the restrictions on supply,” Laughlin told media.
“However, there is a shorter window to make outsized returns before land prices fully adjust and push down development margins and development yields.”
