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PGIM Real Estate closes European debt fund

PGIM Real Estate closed Pramerica Real Estate Capital VI at £1 billion ($1.25 billion), surpassing its fundraising target of 750 million, said a spokeswoman.

The European debt strategy provides alternative financing, including whole loans, mezzanine and preferred equity. Investments range from about £10 million to more than £100 million across Western Europe.

PGIM Real Estate raised more than 80% of the capital for PRECap VI during the nine months after the U.K.'s vote to leave the European Union, said a news release from the firm.

We are delighted with the strength of investor participation, particularly after the Brexit vote,” Andrew Radkiewicz, global head of debt strategies for PGIM Real Estate, said in the release. “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.”

Investors in the fund include the $8.6 billion San Bernardino County Employees' Retirement Association, which committed $25 million; $186 billion New York State Common Retirement Fund, which committed $200 million; $51.3 billion Pennsylvania Public School Employees' Retirement System, 75 million; and $21.2 billion New Mexico State Investment Council, 70 million.