PGIM has surpassed $4bn (£2.98bn) in funding for land-banking projects through a partnership with Domain Real Estate Partners as its steps deeper into asset-based finance (ABF).
The $1.4tn global investment management business of Prudential Financial and Domain have completed seven residential land-bank transactions in the US through the partnership.
Land banking provides structured, asset-level financing for residential land acquisition and development, with the partnership targeting national housebuilders.
Read more: ABF: Know your assets
The $4bn of capital raised for land banking marks part of the expansion of PGIM’s private ABF platform, which has already executed transactions across consumer credit, residential mortgages, fund finance, commercial finance and digital infrastructure.
“Asset-based finance represents one of the most compelling growth opportunities across today’s credit landscape,” said Gabriel Rivera, co-head of securitised products at PGIM, which includes both public and private ABF markets.
Read more: The next frontier in ABF: A $20tn opportunity and the challenge of scale
According to the firm, PGIM’s securitised products platform has grown to $163bn and forms part of PGIM’s $1.2tn credit investment group.
Meanwhile, Domain is a capital partner to the US housebuilding industry, with more than $6bn currently deployed across its portfolio.
“Our partnership with Domain allows us to deliver capital solutions for homebuilders outside of traditional bank financing to help accelerate housing development in the US,” said Oliver Nisenson, head of private asset-based finance at PGIM.
Read more: PGIM targets US retirement market with first private credit CIT
