Pramerica secures €260m for debt fund

Pramerica Real Estate Investors has closed its latest debt fund following a capital commitment of €260 mln.

In total the company has raised €520 mln for its Pramerica Real Estate Capital III fund, which comprises an initial €260 mln tranche of discretionary capital with the capacity to increase it by a further €260 mln once the initial tranche is successfully invested.

The fund’s strategy is focused on junior real estate debt at lower loan-to-value ratios ranging from 45% to 75%.

The €260 mln capital sum includes a commitment from Dutch pension fund manager APG and brings to €1.1 bn the amount of discretionary capital the company has raised from institutional investors in total.

Pramerica managing director Andrew Macland is looking to exploit growing opportunities in areas of financing not currently being filled by banks and other senior lenders.

‘We believe there is still a tremendous opportunity to fill a funding gap in Europe, particularly in the UK and German markets. We’re looking forward to working with new and existing partners this year to meet the need for innovative lending solutions in the market,’ he said.