PGIM Real Estate Raises $235M for Mexican Private Real Estate Fund
MADISON, N.J. — PGIM Real Estate has completed a capital raise of $235 million for PruMex IV CKD, a closed-end real estate fund investing across various property sectors in Mexico. The capital raise included investments from Mexican institutional investors, as well as a co-investment from PGIM. More than half of the capital was raised from existing PGIM Real Estate clients, with the remaining capital coming from new investors.
“The strong market fundamentals in Mexico, including a growing middle class, competitive labor costs and manufacturing, and favorable housing policies and regulatory changes, continue to be the key drivers for the development of industrial and residential assets in the country,” says Alfonso Munk, chief investment officer for the Americas at Madison-based PGIM Real Estate.
Expanding on the investment strategy of the prior PruMex fund series, which focused solely on industrial real estate, PruMex IV will also invest in multifamily, mixed-use and residential-for-sale properties to create a well-diversified portfolio in Mexico. This fund will invest through PGIM Real Estate’s professionals operating out of the Mexico City office.
Target investment markets include the Bajio-Central and north border regions for industrial assets, and the Mexico City metropolitan area for residential-for-sale, multifamily and mixed-use assets.
PGIM Real Estate has been investing in Latin America since 2002, and today is one of the largest international real estate investment managers in the region, with approximately $3 billion in gross assets under management as of March 31.
With a dedicated team of approximately 70 professionals based in Mexico City, PGIM Real Estate manages country-specific strategies investing in industrial, residential, retail and mixed-use properties on behalf of institutional investors.
PGIM Real Estate has been a pioneer in the region, investing in Mexico’s emerging multifamily sector in 2009, and creating Terrafina, a publicly traded FIBRA (investment trust vehicle), in 2013 by combining its industrial portfolio of funds. Terrafina has approximately $2 billion in gross assets under management as of May 1, and is externally managed by PGIM Real Estate.
PGIM Real Estate is the real estate investment business of PGIM, the global investment management business of Prudential Financial Inc. (NYSE: PRU). PGIM Real Estate had gross assets under management of $66 billion ($47.6 billion net) as of Dec. 31, 2016.
— Matt Valley