has expanded its agriculture financing platform into Australia, marking the first expansion of its agriculture lending business beyond North America, with an expectation of building up a billion-dollar loan book over the next five years.
Real Estate will provide fixed-rate, long-term financing solutions to Australian farm operators and agribusinesses through a partnership with specialist agricultural debt provider, Foundation Agri Finance.
David Haydon, founder and executive director, foundation Agri Finance, said: 鈥淟ending to Australian agriculture businesses has become increasingly short-term and less about the customer. We want to reverse this trend and offer long-term financing solutions that are built around the needs and goals of each customer.鈥�
It closed its first transaction at the end of last year, providing a loan to a diversified horticultural business.
Rachelle Schlesinger, head of agriculture finance, PGIM Real Estate, said: 鈥淲e chose to expand into the Australian market because we see significant demand from borrowers for the kinds of long-term, predictable financing solutions that we have built our reputation on in the US. Importantly, our operational infrastructure is already in place given our existing commercial real estate business in Australia.鈥�
PGIM Real Estate has been active in agricultural lending for 120 years with a business focused on the US. It is part of PGIM Real Estate鈥檚 agricultural investment platform that has grown in the last 10 years, with assets under management growing from US$4bn (鈧�3.7bn) 10 years ago to US$10.8bn today.
PGIM has established a presence in Australia since opening in 2011, with a team of commercial real estate and private credit investment experts on the ground.
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