Pramerica Real Estate Investors has announced that it has raised approximately $700 million for its PRECO III closed-end, commingled real estate opportunity fund. The fund invests in private equity, direct property, mezzanine and preferred equity opportunities on behalf of large institutional U.S., U.K., Dutch and Irish investors. Pramerica is the real estate investment and advisory business of Prudential Financial, Inc., based in the United States.
With leverage, the fund has $2.7 billion available for investments. Pramerica's global merchant banking team, with offices in the U.S. and the U.K., manages the fund and has already made a significant number of investments.
In Europe, the team has taken its experience with self-storage investing in the U.S. and U.K. to Spain through an investment in Blue Self Storage S.L. Pramerica also has invested in a residential strategy in Stockholm, Sweden, through Aros Sweden Residential and expanded recently into Switzerland through the acquisition of real estate development company A&A Liegenschaften Schweiz AG.
In the U.S., Pramerica has invested in residential projects with the Clarett Group and with Colonnade Properties, in medical office facilities with Lillibridge Healthcare Real Estate Trust, in industrial properties with Ridge Property Trust, and in a sale-leaseback strategy with CRIC Capital. Pramerica has also invested in mezzanine and bridge lending strategies in the U.S. with Red Stone Partners and Black Mountain.
"By investing through real estate companies with well-defined business strategies in institutional markets in North America and Western Europe, we can offer our investors the potential for opportunistic returns," said Robert Falzon, managing director and head of Pramerica's global merchant banking team.