- Transaction marks firm’s return to Canada after 20-year absence
TORONTO, January 21, 2016 - Prudential Mortgage Capital Company, operating on behalf of The Prudential Insurance Company of America, provided C$195m ($148m USD) in permanent financing to Prologis, Inc. for an industrial portfolio in Toronto, the company announced today. Prudential Mortgage Capital Company is the commercial mortgage lending business of PGIM, the global investment management businesses of Prudential Financial Inc. (NYSE: PRU).
The 10-year loan is secured by an eight-property portfolio totaling nearly 3.5m square feet across the Greater Toronto Area. The portfolio is 100-percent leased to 16 tenants and features buildings constructed between 2006 and 2014.
“Prologis’ sponsorship, the quality of the properties and the solid fundamentals of the local market combined to make this an attractive entry into the Canadian market,” said Christy Lockridge, principal of originations at Prudential Mortgage Capital Company. “The Greater Toronto Area is the third-largest industrial market in North America, and we are excited to enter it by financing these new Class-A assets.”
Tenants, including major corporations such as PepsiCo and Ikea, are attracted to the properties’ modern features, which include 28’-32’ clear heights, ample dock high doors and trailer parking, and functional layouts.
This transaction marks the firm’s first loan origination in Canada for The Prudential Insurance Company of America in 20 years. In recent years, the firm has expanded outside of its United States base, including throughout Europe and Asia Pacific.
“Prudential Mortgage Capital Company continues to grow and evolve into a truly global company with capabilities and expertise across the real estate finance spectrum, and our reentry into Canada is yet another example of this,” said David Durning, CEO of Prudential Mortgage Capital Company. “Canadian commercial real estate markets are among the most attractive in the world with a strong demand for commercial real estate debt.”
Prudential Mortgage Capital Company is a national full-service, commercial and multifamily mortgage finance business with more than $87.54 billion in assets under management and administration as of September 30, 2015. Leveraging a 140-year history of real estate finance, the company offers one of the most comprehensive lines of real estate finance products and originates loans for Fannie Mae DUS®, Freddie Mac Program Plus® and specialized affordable housing programs; FHA; Conduit; Prudential’s general account; and other institutional investors. The company maintains a loan servicing portfolio of approximately $85.75 billion, as of September 30, 2015. For more information, please visit http://www.prumortgagecapital.com.
Prudential Financial, Inc. (NYSE: PRU), a financial services leader with more than $1 trillion of assets under management as of September 30, 2015, has operations in the United States, Asia, Europe and Latin America. Prudential’s diverse and talented employees are committed to helping individual and institutional customers grow and protect their wealth through a variety of products and services, including life insurance, annuities, retirement-related services, mutual funds and investment management. In the U.S., Prudential’s iconic Rock symbol has stood for strength, stability, expertise and innovation for more than a century. For more information, please visit www.news.prudential.com.
Prologis, Inc. is the global leader in industrial real estate. As of September 30, 2015, Prologis owned or had investments in, on a wholly owned basis or through co-investment ventures, properties and development projects expected to total approximately 671 million square feet (62 million square meters) in 21 countries. The company leases modern distribution facilities to more than 5,200 customers, including third-party logistics providers, transportation companies, retailers and manufacturers.