Prudential Real Estate Investors (PREI), known as Pramerica in Europe, has raised $629m (鈧�559m) for a senior housing fund.
Four new investors, including US public and corporate pension plans, backed the investment manager鈥檚 Senior Housing Partners V fund, committing $199m.
PREI said it exceeded its initial target of $500m for the closed-ended fund. Ten existing investors backed the fund with $431m.
Noah Levy, head of PREI鈥檚 senior housing business, said the sector is now a 鈥渧iable property type鈥� for many pension funds in the US.
鈥淭his certainly wasn鈥檛 the case when we started our senior housing business in 1998,鈥� Levy said.
Total capital available to invest for the fund will be in excess of $1bn, he added.
鈥淭his is likely be the case as we have a maximum 65% leverage on a portfolio basis,鈥� Levy said. 鈥淭here are no assets in the fund now, but we are hopeful of having 30 to 40 assets in the fund over time.鈥�
The fund will invest in the independent, assisted-living and memory-care segments of the senior housing industry. PREI said the fund will employ a flexible investment strategy targeting direct acquisitions, forward commitments, developments, mezzanine loans, and other opportunities.
鈥漌e are planning to invest the capital in a variety of markets around the US.
鈥淭his would include the West Coast, the Northeast, Mid-Atlantic and some deals in the Midwest.鈥�
The fund will buy existing properties and invest in new projects, Levy said.
