PGIM Real Estate raised $300 million in the first close of its recently launched U.S. real estate debt fund, PERE News reported.
Unnamed sources with knowledge of the matter told the news outlet that the capital for the PGIM Real Estate US Debt fund came from five investors.
The firm, through the fund, plans to originate first mortgages for diversified real estate properties across the U.S. The fund set its net internal rate of return target at 7%, according to the report.
Madison, N.J.-based PGIM Real Estate is the real estate investment arm of Prudential Financial Inc., with $65.9 billion of gross assets under management as of March 31, PERE noted.