US giant swoops for 25% stake in property group Langtree
US asset management business PGIM Real Estate has acquired a 25% stake in property development and management firm Langtree, on behalf of an investment strategy, in an undisclosed multimillion-pound deal.
PGIM Real Estate is the real estate investment business of PGIM, the $1.4 trillion global investment management businesses of US-based Prudential Financial, Inc.
The investment will build on Langtree’s strong growth since its foundation five years ago and provide it with the financial resources to boost its activities.
The firm, which employs 40 staff, is behind a number of major schemes in the North West as well as owning and managing a substantial property portfolio of 50 sites across the North West, Midlands and Yorkshire totaling 2.3 million sq ft, with some 450 tenants, including Orital Industry Park in Leeds.
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.
“Langtree has a strong management team with a wide range of expertise and together with the strengths that we can bring to the business, we are excited about the future and keen to start exploring new opportunities.”
John Downes, Langtree’s chief executive and its majority shareholder, said: “We are delighted to have secured this equity investment into the business.
“PGIM Real Estate has tremendous strength in depth and a wealth of experience supporting joint ventures, which is a key aspect of our business.
“Their 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.”
Langtree’s model includes a number of third-party management contracts comprising industrial, office and residential for clients that include PGIM Real Estate.
PGIM Real Estate currently has $182.5bn in gross assets under management and administration.
