Investment Tales

PREI Closes U.S. Real Estate Debt Fund

Prudential Real Estate Investors has raised $805 million in discretionary capital for its Prudential U.S. Real Estate Debt Fund. It has so far raised $1.6 billion for its global debt strategy, according to the company.

Investors include pension funds and sovereign wealth funds from the U.S., Asia and the Middle East.

2prudentiallogo PREI Closes U.S. Real Estate Debt FundThe fund will take advantage of demand generated over the next several years brought on by the massive amount of maturing loans.

“In the U.S., we expect significant demand for creative debt financing as approximately $1.8 trillion in mortgage loans come due over the next several years,” said Jack Taylor, managing director, head of PREI’s global real estate finance group and portfolio manager for the U.S. platform. “We look forward to continuing to build long-term relationships by providing capital to borrowers, co-lenders and other market participants, while meeting the strong and growing global appetite from institutions for access to sound debt investments with attractive risk-adjusted returns.”

The fund’s New York-based management team includes Managing Directors Steve Alpart and Steve Plust. Mr. Alpart said that typical investments will be between $10 million and $65 million, “but can be significantly larger.”

This fund closing comes on the heels of PREI’s 2011 U.K. fund, Pramerica Real Estate Capital 1.

cgaines@observer.com

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