PGIM Real Estate raises more than £1b for European private real estate debt fund
April 27 2017 - 3:00AM
Business Wire
PGIM Real Estate has completed a capital raise exceeding £1
billion for PRECap VI (Pramerica Real Estate Capital VI),
surpassing its fundraising target. PRECap VI is the largest fund in
a series dedicated to investing in private real estate debt in
Europe.
PGIM Real Estate is the real estate investment business of PGIM,
the global investment management business of Prudential Financial,
Inc. (NYSE: PRU). With more than $1 in trillion assets under
management, PGIM is a top 10 global money manager and is the
largest worldwide institutional real estate manager* with $154
billion net assets under management in debt, equity and securities
as of December 31, 2016.
PGIM Real Estate raised more than 80 percent of the capital for
PRECap VI during the nine months following the U.K.’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. Investors were attracted to the
fund’s income-driven real estate debt strategy, which targets
double-digit returns, while providing downside protection.
“We are delighted with the strength of investor participation,
particularly after the Brexit vote,” said Andrew Radkiewicz, 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.”
PRECap VI will follow a strategy consistent with its five
predecessor European debt strategies. The fund will provide
alternative finance across the capital stack, in the form of whole
loans, mezzanine and preferred equity, targeting predictable income
returns combined with capital upside through profit participation.
It will consider investments ranging from about £10 million to over
£100 million, working with experienced real estate sponsors across
western Europe in specialized sectors for which PRECap’s funding
structures work particularly well. Examples include real estate
that requires development finance funding, repositioning or other
value-add initiatives.
“The demand for alternative funding sources continues to grow,”
explained Andrew Macland, head of PGIM Real Estate’s U.K. 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 first mover to identify private
real estate debt as an alternative investment opportunity. Since
2010, and testament to its fully integrated private equity and debt
platform in Europe, PGIM Real Estate has raised and deployed more
than £2 billion in European private real estate debt over 60
transactions throughout Western Europe, assisting owners and
operators to finance real estate with an underlying asset value of
more than £10 billion.
About PGIM Real Estate
PGIM Real Estate is the real estate investment business of PGIM,
Inc., the global investment management businesses of Prudential
Financial, Inc. (“PFI”) (NYSE:PRU). Redefining the real estate
investing landscape since 1970, PGIM Real Estate has professionals
in 18 cities in the Americas, Europe and Asia Pacific with deep
local knowledge and expertise, and gross assets under management of
$66.0 billion ($47.6 billion net) as of Dec. 31, 2016. PGIM Real
Estate’s tenured team offers to its global client base a broad
range of real estate investment vehicles that span the risk-return
spectrum across core, core plus, value-add, debt, securities, and
specialized investment strategies. For more information, visit
www.pgimrealestate.com.
About PGIM
With 14 consecutive years of positive third-party institutional
net flows, PGIM, the global asset management businesses of PFI
(NYSE: PRU), ranks among the top 10 largest asset managers in the
world with more than $1 trillion in assets under management as of
Mar. 31, 2017. PGIM’s businesses offer a range of investment
solutions for retail and institutional investors around the world
across a broad range of asset classes, including fundamental
equity, quantitative equity, public fixed income, private fixed
income, real estate and commercial mortgages. Its businesses have
offices in 16 countries across five continents.
PFI’s additional businesses offer a variety of products and
services, including life insurance, annuities and
retirement-related services. For more information about PGIM,
please visit http://www.pgim.com. For more information about PFI,
please visit www.news.prudential.com.
© 2017 PGIM is the primary asset management business of
Prudential Financial, Inc. (PFI). PGIM Real Estate is PGIM’s real
estate investment advisory business and operates through PGIM,
Inc., a registered investment advisor. Prudential, Pramerica, PGIM,
their respective logos as well as the Rock symbol are service marks
of PFI and its related entities, registered in many jurisdictions
worldwide. PFI of the United States is not affiliated with
Prudential plc, a company headquartered in the United Kingdom. Ref:
17BDUFF-ALMQY9
View source
version on businesswire.com: http://www.businesswire.com/news/home/20170427005558/en/
Media:PGIMBrendan Duffy,
973-802-5711brendan.duffy@prudential.com
Prudential Financial (NYSE:PRU)
Historical Stock Chart
From Apr 2024 to May 2024
Prudential Financial (NYSE:PRU)
Historical Stock Chart
From May 2023 to May 2024