PREI Raises $805 Million From Institutional Investors For its U.S. Debt Fund
Prudential Real Estate Investors announced today that it has secured $805 million of discretionary capital for its Prudential U.S. Real Estate Debt Fund, bringing to more than $1.6 billion the amount PREI has raised so far from investors for its global debt strategy. PREI® is the real estate investment and advisory business of Prudential Financial, Inc. (NYSE: PRU).
The investors in the fund consist of leading investment institutions including pension funds, sovereign wealth funds and other prominent global investors from the United States, 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 million raised in 2011 for its U.K. offering, Pramerica Real Estate Capital 1 Fund.
“In the U.S., we expect significant demand for creative debt financing as approximately $1.8 trillion 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 PREI's global real estate finance group and portfolio manager for the U.S. platform. “We look forward to continuing to build long-term relationships by providing capital to borrowers, co-lenders and other market participants, while meeting the strong and growing global appetite from institutions for access to sound debt investments with attractive risk-adjusted returns.”
The senior management team of the U.S. debt platform, managed from the firm's New York office, includes Steve Alpart and Steve Plust, both managing directors and long-time colleagues of Taylor.
“We will target debt investments secured by institutional quality income producing properties throughout the U.S., owned by experienced real estate investors,” Plust said. “The fund will provide fresh capital for new originations as well as make secondary market purchases of performing, sub-performing and non-performing loans.”
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