Fundraising - MAY 12, 2017

PGIM raises $235m for Mexican private real estate fund

by Released

PGIM Real Estate has raised $235 million for PruMex IV CKD, a closed-end real estate fund investing across various property sectors in Mexico.

The capital raise included investments from Mexican institutional investors, as well as a co-investment from PGIM. More than half of the capital was raised from existing PGIM Real Estate clients, with the remaining capital coming from new investors.

“The strong market fundamentals in Mexico, including a growing middle class, competitive labor costs and manufacturing, and favorable housing policies and regulatory changes, continue to be the key drivers for the development of industrial and residential assets in the country,” says Alfonso Munk, Americas chief investment officer for PGIM Real Estate.

Expanding on the investment strategy of the prior PruMex fund series, which focused solely on industrial real estate, PruMex IV will also invest in residential-for- sale, multifamily and mixed-use properties to create a well-diversified portfolio across the spectrum of opportunities in Mexico. Target investment markets include the Bajio-Central and north border regions for industrial assets, and the Mexico City metropolitan area for residential-for-sale, multifamily and mixed-use assets.

PGIM Real Estate has been investing in Latin America since 2002, and as of March 31, had approximately $3 billion in gross assets under management. PGIM Real Estate manages country-specific strategies investing in industrial, residential, retail and mixed-use properties on behalf of institutional investors. PGIM Real Estate has been invested in Mexico’s multifamily sector since 2009, and created Terrafina, a publicly traded FIBRA, in 2013 by combining its industrial portfolio of funds. As of May 1, Terrafina had approximately $2 billion in gross assets under management.

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