Morgan Laughlin

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 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-chief executive officer and global chief investment officer  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.”

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Raimondo Amabile

PGIM Real Estate, the US$210 billion real estate investment manager, has launched RealAssetX, an innovation lab to research, develop and invest in technology that aims to accelerate advancements in the real asset industry.

Underpinned by data from PGIM Real Estate and third-party data sources, RealAssetX will partner with leading universities around the world – working in the fields of sustainable tech, artificial intelligence (AI) and deep tech – to research and develop new technologies that can be incubated and eventually adopted by owners, operators and managers of real assets.

Raimondo Amabile, co-CEO and Global Chief Investment Officer at PGIM Real Estate, comments: “The profound impact that the fast-moving technology wave is having on the real asset industry means that investment managers’ success will be defined by their ability to be tech-enhanced through every stage of the investment lifecycle. By partnering with leading universities and technology companies, RealAssetX is building an ecosystem to develop new technologies that don’t exist today – leveraging forward-thinking research and development to drive transformation within PGIM Real Estate and the broader real asset industry.”

The ecosystem of RealAssetX comprises of three interconnected pillars:

• Data Intelligence: Building unique datasets and advanced analytics that combine unstructured third-party data with data accumulated by PGIM Real Estate over 50 years through the firm’s investment activities.
• Research & Development: RealAssetX is partnering with leading universities and technology companies globally to drive projects through from conception to incubation, funding and/or launch. This includes establishing an accelerator program for early-stage technology companies with research-led intellectual properties.
• • In Asia-Pacific, a partnership with the National University of Singapore explores research data and AI for predictive analytics, whilst a second partnership in the region with University of New South Wales focuses on deep tech and sustainability.
  • In the UK, RealAssetX is partnering with UCL (University College London) to launch the UCL Centre for Sustainability and RealTech Innovation, focusing on research projects in sustainability, AI, and innovation in real assets.
  • In the US, a partnership with the University of Chicago Data Science Institute will focus on big data analysis and AI for predictive analytics to improve investment decisions and portfolio construction processes.
• Investments: Developing strategic partnerships with venture capital firms to invest and deliver modern technologies for the industry. RealAssetX will partner with Taronga Ventures, a leading global real asset technology manager, to enable third-party capital to invest in early and later stage technology companies.

Cathy Marcus, co-CEO and Global Chief Operation Officer at PGIM Real Estate, continues: “We strongly believe that better technology can improve efficiency and create better investment performance. Through RealAssetX, we are leveraging the depth and breadth of PGIM Real Estate’s 53 years of data and research, alongside the insights and expertise of leading academics and venture partners, to identify and implement new technology that can improve business operations, augment asset management strategies at our properties and enhance investment decision-making on behalf of our clients.”

Over time, RealAssetX will form new strategic partnerships globally as its work develops across all three pillars.

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