"By investing through real estate companies with well-defined business strategies in institutional markets, we can offer our investors the potential for opportunistic returns," says Robert Falzon, managing director of PREI's merchant banking group, based here. "With leverage, the fund has $2.7 billion available for investments."
To date, PRECO III funding has gone for a number of properties in the US, according to Falzon, including several residential projects with both the Clarett Group and Colonnade Properties. Investments have also been made in medical office properties with Lillibridge Healthcare, a REIT, in industrial properties with Ridge Property Trust, and in sale-leaseback deals with CRIC Capital. PREI, the real estate investment and advisory business of Prudential Financial, has also invested in mezz and bridge lending in the US with Red Stone Partners and Black Mountain.
In Europe, meanwhile, PRECO funds have gone into self-storage properties in Spain through an investment in Blue Self Storage S.L. The fund has also invested in residential properties in Sweden through Aros Sweden, and most recently expanded into Switzerland with the acquisition of the real estate development company A&A Liegenschaften Schweiz AG.
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