Pramerica Real Estate Investors and Algemene Pensioen Groep have launched Pramerica Real Estate Capital V (Netherlands) (“PRECap Netherlands”). Pramerica raised €265 million of discretionary capital of which the majority is provided by APG, the leading pension fund manager in the Netherlands, which has more than €345 billion of assets under management. Pramerica Real Estate Investors is the European arm of the real estate investment and advisory business of Prudential Financial, Inc. (NYSE: PRU), which is headquartered in the United States and has a global real estate debt platform of more than $5 billion.
The latest fundraising follows 30 debt investments from the Pramerica Real Estate Capital (“PRECap”) platform, with the value of capital invested exceeding €1.2 billion in loans secured on €4.6 billion of European real estate, cementing Pramerica’s place at the forefront of the junior debt market.
The strategy for PRECap V Netherlands is to build up a diverse junior debt and preferred capital portfolio, secured against commercial real estate assets located in the Netherlands, with a partial allocation to Belgium.
Andrew Radkiewicz, Managing Director and Co-head of Europe at Pramerica, commented, “The Netherlands is at an attractive point in the cycle, 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 market, with a large number of loans and CMBS expiring in the short to medium term, and a significant shortfall in existing debt availability. Any deals we do will be predicated on the quality of the underlying asset secured on the loan, but we believe that there is potential to generate excellent risk adjusted returns on behalf of our investor.”
Robert-Jan Foortse, Head of European Property Investments at APG Asset Management, commented, “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.”
Source: FTI Consulting