Real Estate has remained resilient even as the COVID-19 pandemic continues to disrupt the global economy. Transaction and activities in the sector have been building up over the past year at the back of new projects and strong demand for new homes. PGIM Real Estate conforming it completed nearly $30 billion in transactions in 2020, attests to improving fundamentals in the sector
PGIM $30 Billion
The real estate manager completed 911 real estate-related transactions in 2020 for a total amount of about $30 billion; the deal volume includes $10.2 billion in real estate equity investments and dispositions on behalf of third-party investors. The firm also completed $19.5 billion in real estate financing.
The transaction volume includes $25.3 billion through 835 transactions that took place in the Americas, made up of $6.9 billion in equity and 418.4 billion in debt. European transactions amounted to 53, accounting for $3.3 billion, with the Asia Pacific accounting for 23 transactions valued at $1 billion.
The company’s lending platform recorded a record $9.6 billion in multi-family production volume in 2020. The real estate manager also recorded over $7 billion in core financing globally across 143 loans, including 46 billion in the U.S.
Real Estate SPAC
As the covid-19 situation shows signs of improvement amid the widespread vaccination campaigns, worldwide activities in the U.S real estate sector are expected to edge even higher. VC Backed Matterport that designs software that allows virtual walkthroughs is considering going public amid the boom in the real estate industry.
The company has opened talks with Gores Holding VI, a special purpose acquisition company, as it looks to leverage the SPAC’s pathway to becoming a public company. With the deal expected or close in the second quarter, the resultant company will be known as Matterport Inc. and will list on the NASDAQ. According to Bloomberg, the resulting company will be valued at $2 billion.
Matterport has risen to prominence amid strong demand for virtual walkthroughs amid the pandemic. Its 3D technology is currently in use in more than 130 countries. The company has raised $168 million and valued at $355 million as of 2019. Some of the biggest investors in the company include DCM Ventures Qualcomm and Advanced Micro Devices.
10X Genomics Office Building
10X Genomics is the latest to signal what could turn out to be a busy year. The company has bought a big Pleasanton site where I plan to establish a hub for its local operations. The life sciences company intends to transform a long-time retail center into a modern office campus.
The company paid $29.4 million for the shopping center that is close to its headquarters and next to the Stoneridge Shopping center. As it stands, 10X Genomics intends to build three office buildings and a parking garage on the site. The construction comes on the company experiencing rapid headcount growth from 110 employees as of 2015 to $over 580 as of 2019.
Separately Alexandria Real Estate Equities has a price cash tender offer of all its outstanding 4,000% Senior Notes due 2024. Alexandria Real Estate Equities L.P guarantees the Notes.