PGIM Real Estate, the property investment business of PGIM, Prudential Financial's investment management arm, has compeleted a capital raise exceeding £1 bn (€1.18 bn) for its private European debt fund Pramerica Real Estate Capital VI (PRECap VI).
PRECap VI is the largest fund in a series dedicated to investing in private real estate debt in Europe. The capital raise surpasses its fundraising target.
'We are delighted with the strength of investor participation, particularly after the Brexit vote,' commented Andrew Radkiewicz (pictured), global head of debt strategies for PGIM Real Estate. 'We saw a fundamental increase in commitments from institutional investors’ real estate, private credit and alternative fixed income allocations, due to the sustainable risk adjusted returns offered by this asset class.'
According to the business, PGIM Real Estate raised more than 80% of the capital for PRECap VI during the nine months following the UK’s European Union referendum. Investors in the closed-end discretionary fund include prominent public and private pension funds, sovereign wealth funds, and insurance companies from the Americas, Europe, the Middle East and Asia Pacific.
'The demand for alternative funding sources continues to grow,' said Andrew Macland, head of PGIM Real Estate’s UK business and European Debt. 'The scale of our capital raise provides much needed liquidity in a financing market that is increasingly restricted by regulatory and structural change. As a funding partner, we offer certainty and continuity to investors, developers and operators of real estate in Europe in this changing environment.'
In 2009, PGIM Real Estate was a prime mover in the industry identifying private real estate debt as an alternative investment opportunity. Since 2010, it has raised and deployed more than £2 bn in European private real estate debt, with more than 60 transactions throughout Western Europe.
