PGIM Real Estate has raised close to a billion dollars for its latest US senior housing fund, exceeding its $750m (€691m) target.
The manager said the Senior Housing Partners VI (SHP VI) fund received $996m in capital commitments primarily from institutional investors, making it the largest capital raise to date for PGIM’s senior housing sector fund series.
The amount raised by SHP VI included $570m from existing institutional clients, in addition to $426m from new institutional and high-net-worth investors.
The predecesor SHP V fund closed in 2015 with approximately $629m in commitments.
The SHP series started in 1998. In line with previous SHP funds, SHP VI will invest in the independent, assisted living and memory care segments of the seniors housing sector.
The manager said the fund will target direct acquisitions, developments, pre-sales and other opportunities.
Steve Blazejewski, senior portfolio manager for PGIM Real Estate’s SHP strategies, said: “The strength of commitment to SHP VI is a testament to the market’s increasing recognition of the compelling demographic trends that are driving demand for senior housing across the US
“As the sector continues to mature and interest in the property type broadens, PGIM Real Estate’s longstanding senior housing platform, track record and industry relationships provide investors access to a unique set of opportunities.”