Principal Real Estate Debt Fund III brings in $578.6m

Principal Real Estate Investors has announced the final closing of its third high-yield, private debt fund, collecting 30 limited partner commitments for a total of $578.6 million.

Principal Real Estate Debt Fund III brought in a diverse group of investors, including public and corporate pension funds, insurance companies, sovereign wealth funds, endowments, and foundations from the United States, Asia and the Middle East.

Principal said it is planning to continue dispensing capital across private commercial real estate debt investments, primarily mezzanine debt, b-notes, senior mortgages (including bridge loans), and participating construction permanent loans in major U.S. markets.

Prior to Fund III, the previous two funds in the series raised more than $1.3 billion in commitments and made more than $2 billion of total investments.

As of Jan. 31, Fund III has closed or committed 11 investments representing 37 percent of the fund’s equity.