LONDON-Friends Life, a UK-based insurance and pensions provider, says a new $746 million (£500m) investment plan has been awarded to the commercial mortgage business of Pramerica Investment Management Ltd., the asset management business of Prudential Financial Inc., headquartered in the US.
The mandate relates to the investment in commercial real estate (CRE) loans in Friends Life's annuity funds. The CRE assets will be UK-based, senior secured, fixed rate loans with maturities of between five and 15 years, with loans being originated by Pramerica's London-based mortgage business, Pricoa Mortgage Capital Company.
“We are very pleased to begin this new relationship with Pramerica's mortgage business,” said Mark Versey, chief investment officer at Friends Life. “After extended analysis of our annuity fund portfolios, we identified CRE loans as an attractive alternative source of assets to effectively meet the ongoing needs of the funds. Pramerica demonstrated their expertise in managing this asset class and we look forward to working with them going forward.”
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David Phillips
David Phillips is a Chicago-based freelance writer and consultant with more than 20 years experience in business and community news. He also has extensive reporting experience in the food manufacturing industry for national trade publications.
