PGIM and Domain Real Estate Partners surpass $4bn in US land-banking transactions
Seven residential land bank transactions have now been completed with national homebuilders.
PGIM and Domain Real Estate Partners have passed $4bn of funding for new US land-banking projects, across seven residential land bank transactions, in an announcement dated 26 May.
Land banking provides structured, asset-level financing for residential land acquisition and development, and the two partners describe the transactions as flexible, nonbank capital for national homebuilders at a time of continued housing undersupply and tightening traditional credit conditions. PGIM is the $1.4tn investment management business of Prudential Financial.
Financing at asset level gives PGIM exposure to residential development secured on the land itself rather than to unsecured corporate homebuilder risk. Seven completed transactions and more than $4bn of funding make this a repeat deployment channel rather than a single private credit trade.
