PGIM Real Estate raises €1.8bn for seventh European debt fund

PGIM Real Estate has raised €1.8bn for PGIM Real Estate Capital VII (PRECap VII), its seventh European debt fund.

PGIM raised more than £1bn for the predecessor fund in April 2017.

The manager said PRECap VII targets high yield real estate debt opportunities in core liquid asset classes, in the largest European markets including the UK, Germany, France, Ireland, Netherlands, Spain and Italy.

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Andrew Radkiewicz, PGIM Real Estate’s global head of private debt strategy and investor solutions, said: “We are delighted by the commitment we have seen from investors for PRECap VII.

“As a secured income-driven strategy, the fund attracted global demand from pension, insurance, sovereign wealth and private clients. The strategy presents an attractive proposition for investors seeking sustainable risk-adjusted returns within their real estate, private credit and alternative fixed-income allocations.”

Andrew Macland, PGIM Real Estate’s head of European debt, said: “We are continuing to see compelling investment opportunities in logistics and living sectors as well as tactical opportunities in low vacancy office markets, fulfilment retail and leisure.

“We are focused on ‘create core’ real estate assets in liquid markets, founded on structural trends in e-commerce and supply chain, living and offices in smart cities across UK and Europe.

“We offer bespoke and creative capital solutions for our borrowers across a wide array of asset classes and jurisdictions and have already committed to 11 investments in PRECap VII, providing a range of whole loans, mezzanine and preferred equity investments.”

Source: Real Assets IPE

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