MADISON, N.J.--(BUSINESS WIRE)--Prudential Real Estate Investors announced today that it has completed the capital raise of Senior Housing Partners V (SHP V) with a total of $629 million in capital commitments. SHP V is the fifth in a series of dedicated, closed-end funds designed to capitalize on investment opportunities in the growing senior housing industry. PREI is the real estate investment and advisory business of Prudential Financial, Inc. (NYSE: PRU).
The capital raise, which exceeded PREI’s $500 million target, included $430.5 million from 10 existing investors and $198.5 million from four new investors, including U.S. public and corporate pension plans.
Consistent with prior Senior Housing Partners funds, SHP V will invest in the independent, assisted living and memory care segments of the senior housing industry. The fund will employ a flexible investment strategy targeting direct acquisitions, forward commitments, developments, mezzanine loans, and other opportunities.
“Powerful demographic trends continue to support the high demand for senior housing, while the supply remains constrained,” said Noah Levy, head of PREI’s senior housing business. “As the overall economy improves, we expect that senior housing will continue to benefit.”
“We are pleased with the strength of participation from PREI’s existing and new clients,” added Kevin R. Smith, head of Americas for PREI. “The successful capital raise is a testament to PREI’s consistent senior housing investment strategy, our longstanding relationships with leading senior housing operators and developers, and our ability to deliver to our clients attractive risk-adjusted returns driven by solid current income.”
Investing in the sector since 1998, PREI has helped to pioneer the dedicated senior housing investment strategy. PREI’s Senior Housing Partners team has invested approximately $2.6 billion in gross assets in the senior housing sector, involving more than 140 properties and over 15,000 units throughout the United States.
Previous PREI Senior Housing Partners funds include: SHP I, which closed in 1998, with approximately $183 million in commitments; SHP II, which closed in 2001, with approximately $94 million in commitments; SHP III, which closed in 2006, with approximately $371 million in commitments; and SHP IV, which closed in 2011, with approximately $569 million in commitments.
Prudential Real Estate Investors is the global real estate investment business of Prudential Financial, Inc. (NYSE: PRU). Investing in real estate on behalf of institutional clients since 1970, PREI today has more than 650 employees located in 19 cities around the world, and gross assets under management of $58.7 billion ($44.1 billion net) as of December 31, 2014. PREI offers to its global client base a broad range of real estate investment vehicles across the risk-return spectrum and geographies, including core, core plus, value-add, opportunistic, debt, securities, and specialized investment strategies. For more information, visit www.prei.com.
Prudential Financial, Inc. (NYSE: PRU), a financial services leader with more than $1 trillion of assets under management as of December 31, 2014, has operations in the United States, Asia, Europe, and Latin America. Prudential’s diverse and talented employees are committed to helping individual and institutional customers grow and protect their wealth through a variety of products and services, including life insurance, annuities, retirement-related services, mutual funds and investment management. In the U.S., Prudential’s iconic Rock symbol has stood for strength, stability, expertise and innovation for more than a century. For more information, please visit www.news.prudential.com.