PGIM Real Estate has taken a stake in a UK developer in a deal that its head of UK transactions has described as a “natural next step” in a decade-plus relationship.
PGIM Real Estate, part of the $1.4tn investment management business of Prudential Financial, has bought the 25% stake in Langtree, the regional developer behind schemes including Wire mixed-use regeneration in Warrington and the SciTech Daresbury science and technology park. The deal was made by PGIM Real Estate on behalf of an investment strategy.
Langtree was formed five years ago when chief executive John Downes led the management buyout of Langtree Group’s public sector development partnership business. The company today has a number of industrial, office and residential third-party management contracts for clients including PGIM Real Estate, John Lewis Partnership Pension Fund and various councils.
Charles Crowe, head of UK transactions at PGIM Real Estate, said: “We have worked with the Langtree team for more than 10 years on numerous ventures. They already manage over £400m of investment and development assets on our behalf and so taking an equity share in the development business was a natural next step.”
John Downes, Langtree’s chief executive and majority shareholder, added: “[PGIM Real Estate’s] investment is a real show of confidence in what we are doing and gives Langtree a tremendous platform to grow, with new opportunities now being a real target.”
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