PGIM Real Estate, formerly known as Pramerica in Europe, is expected to have raised more than £500m (€449m) for its latest European real estate debt fund by the end of the month.

According to a board meeting document of the San Bernardino County Employees’ Retirement Association, PGIM is targeting £1bn for its Real Estate Capital VI fund, half of which should have been secured within the second quarter of the year.

As previously reported, Pennsylvania Public School Employees’ Retirement System and New Mexico State Investment Council have both committed capital to the fund.

PGIM did not comment.

San Bernardino Country is considering a £17m commitment to the fund, which will invest in real estate debt markets predominately in the UK and Germany, targeting net returns of 12%, including 6% income.

PGIM will be making a $50m co-investment in the fund, which has a maximum loan-to-value ratio of 85%.

The planned commitment by San Bernardino County will be part of the $40-50m the pension fund plans to invest in 2016 for non-core real estate.

According to the board meeting document, the PGIM fund is expected to close on a £61m preferred loan that will form part of the financing of three student housing residences in the UK.

The planned developments by Select Property Group, totalling 1,548 units, are located in Glasgow, Manchester and Newcastle.

PGIM is targeting a return of 15% on the deal, which includes a senior loan of £102m.

There is a planned sale or refinance of the three properties following an anticipated four-year holding period.

According to San Bernardino County, PGIM has four other transactions in the works amounting to £135m of capital: an office in London, a logistics development in an undisclosed location, an office in Berlin and a retail asset in Stuttgart.

Four transactions have been closed for the fund totalling £81m, the pension fund said. These involve a retail asset in London, a mixed-use redevelopment in Manchester, a residential investment in London and an office investment in Berlin.