PGIM Real Estate & Foundation Agri Finance Join Forces to Boost Australian Agriculture Financing

PGIM Real Estate, a prominent player in real estate investment, has embarked on expanding its agriculture financing platform into Australia, marking a significant stride beyond its North American base. This strategic move aims to cultivate a billion-dollar loan book within the next five years.

Partnership and Offerings

In collaboration with Foundation Agri Finance, a specialist agricultural debt provider, PGIM Real Estate will extend fixed-rate, long-term financing solutions to Australian farm operators and agribusinesses. This partnership underscores a commitment to reversing the prevailing trend of short-term lending in Australian agriculture, prioritizing tailored, customer-centric financing solutions.

Inaugural Transaction and Vision

The inaugural transaction, which concluded at the close of the previous year, involved extending a loan to a diversified horticultural business. David Haydon, the founder and executive director of Foundation Agri Finance, emphasizes the shift towards customer-centric financing solutions, aligning with individual customer needs and aspirations.

Market Demand and Operational Readiness

Rachelle Schlesinger, head of agriculture finance at PGIM Real Estate, cites substantial demand from borrowers in Australia for long-term, predictable financing solutions akin to those established by PGIM Real Estate in the United States. The existing operational infrastructure of PGIM Real Estate's commercial real estate business in Australia provides a solid foundation for this expansion.

Legacy and Growth Trajectory

With a rich history spanning 120 years in agricultural lending, PGIM Real Estate has primarily focused on the US market. Over the past decade, its agricultural investment platform has experienced remarkable growth, with assets under management surging from US$4 billion to US$10.8 billion. This expansion signifies PGIM Real Estate's commitment to extending its footprint globally while leveraging its expertise and legacy in agricultural finance.

Established Presence in Australia

Since its establishment in 2011, PGIM Real Estate has steadily cultivated a presence in Australia. With a dedicated team of commercial real estate and private credit investment experts on the ground, PGIM Real Estate is poised to capitalize on opportunities within the Australian market.