PGIM Real Estate, billed as the world’s third-largest real estate investment manager, announced the completion of the fundraise for its first Global Data Centre Fund (GDCF) with $2 billion of capital allocated to the strategy.
The company, which obtained the Financial Services Permission (FSP) to operate in Abu Dhabi Global Market (ADGM) late last year, said it secured capital commitments for the fund from a range of global investors.
PGIM’s Global Data Centre Fund creates value through asset-level development joint ventures with leading data centre 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.
The Fund said it has a build-fill-sell investment strategy focused on the low latency hyperscale segment of the global data centre sector, targeting opportunistic investment returns.
Raimondo Amabile, co-chief executive officer and global chief investment officer of PGIM Real Estate, said the company sees a significant opportunity to develop expertise in the data centre space and create a wider digital infrastructure platform.
“Data centres 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,” he said.
Morgan Laughlin, Global Head of Data Centre Investments, said successfully reaching the $2 billion target raise is an important milestone that reflects strong investor confidence in the sector and the company strategy.
“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,” he said.
Data centre growth surge
To date, over $450 million of equity capital has been committed to data centre investments across PGIM Real Estate, and Global Data Centre Fund retains a strong pipeline of opportunities that is expected to allow it to deploy the remaining capital within the next 18 months, the company said.
PGIM, which made an entry into the Middle East market with the opening of an office in Abu Dhabi late last year, has been developing a geographically diversified portfolio of assets targeting investments across the major global data centre markets of North America, Asia Pacific and Europe since its first close of Global Data Centre Fund in July 2023.
