Pramerica Real Estate Investors (PREI), the European real estate investment management business of US insurer Prudential Financial, has raised €265 million for a junior debt fund focused on loans in The Netherlands.
PREI, which controls $54 billion of property assets globally, raised the majority of the capital from Algemene Pensioen Groep (APG), the large Dutch pension administrator.
The fundraise was made via PREI’s Pramerica Real Estate Capital platform, which is responsible for more than €1.2 billion of loans secured against €4.6 billion of European real estate. The venture specifically is aiming to build a portfolio of junior debt and preferred capital secured against real estate in the Netherlands, with a partial allocation to Belgium.
Andrew Radkiewicz, managing director and co-head of Europe at Pramerica, described the Dutch market as being at an attractive point in its cycle for this venture. He said it was “earlier in the recovery phase than the UK, and there is less competition in the lending market compared to other countries, where increasing numbers of lenders are active. We believe there is an exciting opportunity in the Netherlands, with a large number of loans and CMBS expiring in the short to medium term, and a significant shortfall in existing debt availability.”
Robert-Jan Foortse, head of European property investments at APG Asset Management, added: “The Dutch real estate market suffers from a funding gap, where the finance market remains tight and dislocated. At this moment, there is the opportunity in the Netherlands to provide junior debt and to capitalize on both acquisition as well as refinancing opportunities. Within APG Real Estate, we view this as the right moment to allocate capital to the Dutch real estate market through this exclusive debt mandate with Pramerica.”