PGIM Real Estate raises USD134 million for first close of US Property Fund VI
PGIM Real Estate has received USD134 million in capital commitments for the first close of its US Property Fund (USPF) VI.
USPF VI is the sixth in a series of closed-end funds investing in US real estate, and is anticipated to hold a final close in mid-2018. The initial round of capital included new and existing German institutional investors.
“Participation in the fund’s first close reflects investors’ conviction in both PGIM Real Estate’s 47-year track record of investing in the United States and the USPF VI portfolio team’s ability to deliver attractive risk-adjusted returns for our global client base,” says Eric Adler, chief executive officer of PGIM Real Estate.
USPF VI will invest in primary and secondary markets in the US, including for-rent residential, retail, office, logistics and self-storage. It will leverage the strength of PGIM Real Estate’s globally integrated platform, including on-the-ground resources in the United States, as well as Germany and Luxembourg, and its extensive partner network.
“Healthy demand for US real estate is supported by steady economic growth, and limited supply continues to produce solid occupancy and rental growth,” adds Kevin R Smith, head of Americas at PGIM Real Estate. “We are pleased to provide investors with the opportunity to access a balanced portfolio with the flexibility to invest in both core plus real estate investments and select opportunistic development projects throughout the country.”
In September, USPF VI completed its first transaction to acquire 150 Post Street in San Francisco. The mixed-use, seven-story, 105,000 square-foot office and retail building is in the downtown Union Square neighbourhood.
PGIM Real Estate has been investing in the United States since 1970. With more than 350 employees across six cities, PGIM Real Estate’s US business has USD45.4 billion in gross assets under management as of 30 June, 2017.