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GIM Real Estate Pioneers Digital Infrastructure with $2 Billion Fund

    In a significant milestone, PGIM Real Estate has successfully closed its inaugural Global Data Center Fund (GDCF) at $2 billion. This achievement marks the firm's entry into digital infrastructure investments and underscores growing investor interest in hyperscale data centers.

    The GDCF employs a build-fill-sell strategy to target high-growth markets across North America, Asia-Pacific, and Europe. Since its first close in July 2023, the fund has been assembling a diversified portfolio of data center assets, leveraging PGIM Real Estate's decade-long expertise in the sector.

    A surge in demand for cloud computing, AI, and digital connectivity is driving investor appetite for digital infrastructure. Morgan Laughlin, Global Head of Data Center Investments at PGIM Real Estate, notes that "data centers are at the heart of our modern economy and society." The GDCF operates independently, partnering with leading data center operators through development joint ventures to access supply-constrained markets while prioritizing ESG considerations.

    PGIM Real Estate's capital-raising efforts have included a distribution partnership with a global private bank, expanding its investor base. The fund has allocated $450 million in equity capital and expects to deploy the remaining funds within 18 months. Raimondo Amabile, co-CEO of PGIM Real Estate, sees significant long-term potential in digital infrastructure investments.

    As the world's third-largest real estate investment manager, PGIM Real Estate manages $206 billion across 35 cities worldwide. The firm's expansion into digital infrastructure aligns with a broader industry trend of integrating real estate and technology to meet modern demands. With hyperscale data centers driving the digital economy, PGIM Real Estate is poised to capitalize on this rapidly evolving market, offering investors exposure to one of the most transformative sectors in real estate.