M&G Investments has closed its £605 million ($1 billion) Real Estate Debt Fund II, a mezzanine real estate debt fund, and £750 million Real Estate Debt Fund III, a European stretch senior real estate debt fund.
The two closed-end, value-added European real estate funds, raised simultaneously, exceeded their combined £1 billion fundraising target, according to a news release from First Avenue Partners, the sole placement agent for the funds.
“Both junior funds combined with the discretionary capital available for us for the senior mortgage strategy, gives us tremendous firepower to lend across the whole capital structure,” said John Barakat, head of real estate finance at M&G Investments, in the news release.
Among the investors in Fund II are the New Jersey Division of Investment, Trenton, which manages the investments of the $76.8 billion New Jersey Pension Fund; $3.4 billion Dallas Police & Fire Pension System; and $2 billion Fort Worth (Texas) Employees' Retirement Fund.
The New Jersey Division of Investment also invested in Fund III. The Wyoming State Loan and Investment Board, Cheyenne, which oversees $11 billion in permanent funds, is an investor in Fund III as well.
Phone calls to Paul Buckley, First Avenue managing partner, were not returned by press time. M&G spokeswoman Irene Chambers wrote in an e-mail that M&G is unable to comment.