Pramerica raises $805m for US debt fund

Pramerica Real Estate Investors (PREI) has secured $805 mln (EUR 617 mln) for its Pramerica US Real Estate Debt Fund. The latest equity infusion means Pramerica has raised $1.6 bn so far from investors for its global debt strategy.

PREI is the European arm of the real estate investment management and advisory business of New York-listed financial services group Prudential Financial.

The investors in the fund consist of leading investment institutions including pension funds, sovereign wealth funds and other global investors from the US, Asia, and the Middle East. These investors also have extensive co-investment capital to invest alongside the fund. The recent fund closing follows the $800 mln raised in 2011 for its UK offering, Pramerica Real Estate Capital 1 Fund.

'In the US, we expect significant demand for creative debt financing as approximately $1.8 tln in mortgage loans come due over the next several years, leading property owners to search for reliable and trusted sources of capital,' said Jack Taylor, managing director, head of Pramerica Real Estate Investors’ global real estate finance group, and portfolio manager for the US platform.