PGIM Real Estate has raised MXN4.4bn (€215m) for its latest Mexican fund.

The PruMex IV CKD vehicle was backed by Mexican institutional investors, as well as a co-investment from PGIM.

More than half of the capital was raised from existing PGIM Real Estate clients.

“The strong market fundamentals in Mexico, including a growing middle class, competitive labour costs and manufacturing, and favourable housing policies and regulatory changes, continue to be the key drivers for the development of industrial and residential assets in the country,” said Alfonso Munk, Americas chief investment officer for PGIM Real Estate.

The fund will widen its focus beyond industrial real estate to the residential-for-sale, multifamily and mixed-use sectors.

Target markets include the Bajio-Central and north border regions for industrial assets and the Mexico City metropolitan area for residential-for-sale, multifamily and mixed-use assets.

PGIM Real Estate has been investing in Mexico’s multifamily sector since 2009, and in 2013 created Terrafina, a publicly traded FIBRA with US$2bn (€1.83bn) of assets, by combining its industrial funds.