PGIM Real Estate has raised $1.1bn (€926m) for its second European value-add fund.
The manager said the European Value Partners II (EVP II) has raised the capital at the fund’s final close, including sidecar investments.
EVP I, the predecessor fund received €457m in capital commitments at its final close in September 2016. EVP I was launched in 2015 and has deployed capital in office, residential and logistics in Germany and France.
The manager said EVP I is 80% realised and ”on track to significantly outperform its targeted returns”.
EVP II, which is expected to be 70% deployed by the end of the year, has a strong seed portfolio, predominantly comprised of 65% in last-mile logistics and 25% in living assets across Europe’s major markets, PGIM Real Estate said.
Raimondo Amabile, global CIO and head of Europe and Latin America at PGIM Real Estate, said: “Europe offers a compelling mix of value-add real estate opportunities resulting from market dislocation, a cyclical recovery and ongoing structural trends in the region.”
Amabile said the latest fundraise demonstrates continued investor confidence in PGIM Real Estate’s strategy and European platform.
“Importantly, this capital raise also shows that investors see a significant opportunity in the region’s recovery from the COVID-19 pandemic.
“We will continue to source compelling investment opportunities for our investors with a focus on affordable and senior living, logistics and offices in ‘smart cities’, with the aim of creating significant value through tailor-made asset management.”
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