Pricoa, the subsidiary of Prudential of America, has made its first European real estate loan transaction in Europe since opening its London advisory office in January 2012.
Pricoa Mortgage Capital has completed a £70m 11-year loan to O&H Group, secured on a four-strong portfolio of multi-let offices in central London and a supermarket in Bath.
Pricoa’s new European origination business is headed by Drew Abernethy, based in London.
He reports to Thor Orndahl, a managing director, who oversees Pricoa’s non-US mortgage platform.
Orndahl said: “The diversification we can achieve by investing a portion of our portfolio outside the US, whether in Europe, Japan or Mexico, is very valuable.
“The current market dislocation provides the opening we have been looking for and our plan is to be active in Europe for many years to come”.
Pricoa is targeting £325m of long-term, fixed-rate senior debt loans in Europe this year and is looking at Paris and major German cities as well as the UK and at offices, logistics, multifamily and retail property.
The company is the latest insurance group to move into commercial real estate lending banks continue to retreat from the sector.
It joins Aviva, MetLife and M&G Investments and Legal & General Investment Management, which have been active this year.
bridget.o’connell@estatesgazette.com
