Pramerica raises £150m for Euro debt fund

The US firm has won a commitment from Dutch pension fund asset manager, APG, which hasn’t invested in a private equity real estate fund in Europe for nearly three years

Pramerica Real Estate Investors has raised £150 million (€182 million; $224 million) for its European debt fund, it announced today.

The US firm, which is part of financial services giant Prudential Financial, said it would invest the discretionary capital plus any further capital raised for the vehicle in “directly originated real estate mezzanine finance” and “debt-like” preferred equity opportunities.

The fund is led by Andrew Radkiewicz and Andrew Macland, who formerly ran the real estate finance division at London-based NM Rothschild bank.

Jack Taylor, Pramerica’s head of high yield debt investments, said the dramatic shortage of debt capital in the commercial real estate markets had created significant demand among borrowers in the short-term.

In Europe the firm will target borrowers looking to finance acquisitions of between £10 million and £300 million mainly in the UK and Germany.

According to Pramerica, one of the investors is Dutch pension fund asset manager, APG.

In an interview with PERE to be published next month, head of European indirect real estate investments, Robert-Jan Foortse, says the investor hasn’t committed to a European direct property fund for nearly three years.