PGIM Real Estate 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.
PGIM 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: “Lending 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.”
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: “We 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.”
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’s agricultural investment platform that has grown in the last 10 years, with assets under management growing from US$4bn (€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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