PGIM Backs $4 Billion of US Land-Bank Deals in Asset-Based Push

Prudential Financial Inc.’s asset-management arm has financed about $4 billion of land-banking projects through a partnership with Domain Real Estate Partners, part of a push to gain exposure to the US homebuilding industry.

In a typical land-bank transaction, a homebuilder sells undeveloped lots to financing partners and pays a premium for the right to repurchase them later as homes are ready to be built. The arrangement allows builders to control future inventory without tying up as much cash in raw land, freeing capital for construction and other needs. For private sector land banks, the firms fund the acquisitions with ...