PGIM Real Estate closes largest European real estate debt fund in 2021

PGIM Real Estate has closed its seventh fund in its European flagship high-yield debt fund series, PGIM Real Estate Capital VII (PRECap VII), with €1.82 billion ($2.07 billion) of commitments.

According to the firm, this marks the largest European real estate debt fund closed in 2021. The fund attracted global demand from pension, insurance, sovereign wealth and private clients.

PRECap VII has a disciplined focus on high-yield real estate debt opportunities in core liquid asset classes in the largest European markets, including the United Kingdom, Germany, France, Ireland, Netherlands, Spain and Italy.

PGIM Real Estate said the fund has already made several commitments, including a mezzanine loan to support the funding of close to a dozen logistics projects totaling more than €500 million ($566 million) across Italy; a preferred equity loan to finance £240 million ($325 million) of Purpose Built Student Accommodation (PBSA) developments located in the Unite