PGIM Real Estate has raised €304m (£278.6m) for a new open-ended real estate fund.
The first close of the European Core Diversified Property Fund (EuroCore) drew equity capital from six institutional investors.
PGIM Real Estate is the real estate investment business of PGIM, the $1tn (£820bn) global investment management businesses of US-headquartered Prudential Financial.
EuroCore invests in real estate through primarily defensive core strategies in the major European metropolitan markets with a focus on Germany and France. The fund’s evergreen investment strategy aims for broad diversification across sectors, with an overweight to residential.
The EuroCore seed portfolio comprises five office and logistics assets in France and Germany.
“Europe continues to offer an attractive set of investment opportunities – particularly low-vacancy office markets and logistics that offer further near-term growth potential, as well as residential markets that can generate growth alongside downside protection,” said Raimondo Amabile, head of Europe for PGIM Real Estate.
Thomas Kallenbrunnen, senior portfolio manager for PGIM Real Estate’s European core strategy, added: “By consistently employing our transparent and defensive global investment philosophy to the European market, we aim to deliver long-term outperformance and low volatility through cashflow diversification.”
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