San Bernardino County Employees Retirement Association is planning to approve a £50m (€57.7m) commitment to PGIM Real Estate’s latest European debt fund, PRECap VIII.
The fundraising target for PRECap VII is currently unknown, but the manager’s previous Fund VII achieved a final close of €1.8bn in early 2022.
The fund strategy targets high-yield real estate debt opportunities in core liquid European asset classes. The fund targets net internal rates of return of 12%, with 8% of that return expected to come from current income.
PGIM Real Estate did respond to a request for comment.
As previously reported, San Bernardino County had set its 2025 real estate investment pacing plan at $145m (€124.8m) to help maintain its 5% target allocation and diversify its portfolio.
The $16bn pension fund has already approved a $75m commitment to Kayne Anderson Real Estate Partners VII and is considering a real estate co-investment of up to $25m before the year ends.
As of June this year, San Bernardino County had invested 3.7% of its total plan in real estate.
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