LONDON-Prudential Mortgage Capital Co. has made its first commercial real estate loan in Europe to locally based O&H Group. The company obtained a $108 million loan from Prudential that is secured by four office buildings and one retail property in the United Kingdom, the first of $500 million to be invested this year by the new mortgage office.
In a statement, O&H and Prudential didn’t reveal more of the locations of the properties, except to say the offices are in central London and the retail is a grocery-anchored strip in Bath, England. A Prudential spokesman did not return a request for comment. The O&H firm has property assets of about $937 million.
Prudential Financial Inc., the Newark, NJ-based parent firm of the mortgage arm, launched its Europe office here in January. Prudential said it is targeting $500 million of long-term, fixed-rate senior debt transactions in Europe. The company said it is focusing on office, logistics, multifamily and retail properties in areas such as London, Paris and the major cities of Germany to secure the loans.
Thor Orndahl, a managing director with Prudential Mortgage, said the diversification of loans in other countries is very valuable. “The current market dislocation has provided the opening we have been looking for, and our plan is to be active in Europe for years to come,” he said in the statement.
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