German investors back PGIM Real Estate's latest US property fund

PGIM Real Estate’s sixth US property fund has raised $134m (€115.2m) in a first close.

The US Property Fund (USPF) VI, the sixth in a series of closed-ended funds investing in US real estate, is anticipated to hold a final close in mid-2018.

PGIM Real Estate said the initial round of capital included new and existing German institutional investors.

USPF VI will invest in primary and secondary markets in the US, including for-rent residential, retail, office, logistics and self-storage.

In September, USPF VI completed its first transaction to acquire 150 Post Street in San Francisco. The mixed-use, seven-story, 105,000sqft office and retail building is in the downtown Union Square area.

Eric Adler, chief executive officer of PGIM Real Estate, said: “Participation in the fund’s first close reflects investors’ conviction in both PGIM Real Estate’s 47-year track record of investing in the US and the USPF VI portfolio team’s ability to deliver attractive risk-adjusted returns for our global client base.”