The $55.8 billion Public School Employees’ Retirement System of Pennsylvania (PSERS) has committed $125 million to PGIM Real Estate Capital VII, a value-add private real estate fund managed by PGIM Real Estate.
Following the strategy of its predecessors in the fund series, PRECap VII will originate junior loans and preferred equity investments secured by commercial real estate assets located in major Western European markets, with a specific focus on the United Kingdom and Germany, according to recent PSERS’ board meeting minutes.
The fund is targeting £1 billion ($1.3 billion) in equity commitments.
PSERS invested alongside PGIM Real Estate in the predecessor fund, PRECap VI, as well as in two of the manager’s senior housing funds and a farmland separate account.
The latest investment by PSERS will be funded using cash.
As of March 31, PSERS had a 10.5
