PGIM Real Estate has raised €457m for its first pooled European value-add fund.
The real estate investment business of PGIM, owned by Prudential Financial, has completed capital raising for its European Value Partners Fund with backing from institutional and high-net-worth investors.
The vehicle is the firm’s first pooled fund to target value-add opportunities in Continental Europe. PGIM has already made individual value-added investments in the region.
The fund will focus on Germany, France, Spain and Italy.
“Continental 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,” said Raimond Amabile, head of Europe for PGIM Real Estate and senior portfolio manager for the fund.
The fund, which is 25% invested, sold its first asset in July, an office building in the Paris district of Neuilly-sur-Seine. PGIM bought the 15,000sqm asset in July last year.
“We will continue to source compelling investment opportunities for our investors with the aim of creating significant value through tailor-made asset management,” Amabile said.
The fund owns a portfolio of 26 properties in western Germany and three office buildings in Munich office submarkets.