PGIM Private Real Estate Fund Inc., a registered closed-end fund managed by PGIM Investments, has been declared effective by the Securities and Exchange Commission. The fund qualifies for tax treatment as a real estate investment trust, while also being registered under the Investment Company Act of 1940.
PGIM Private Real Estate Fund, which intends to invest primarily in private real estate in the United States, will offer four classes of common stock: Class I, Class D, Class S, and Class T shares.
PGIM Strategic Investments Inc. and an affiliate have agreed to commit $150 million to the fund as an initial source of capital to begin making investments.
Each share class will be priced at net asset value per share, plus, in the case of Class T shares, a maximum sales load of up to 3.5 percent of the offering price. Class I, Class D and Class S are not subject to a sales load. The initial offering price is $25.00, according to the preliminary prospectus filed earlier this month.
Participating broker-dealers will receive ongoing distribution and servicing fees, or 12b-1 fees, of 0.85 percent of NAV per year for Class S and Class T shares only, consisting of a 0.60 percent distribution fee and a 0.25 percent stockholder servicing fee. Class D shares have a 0.25 percent servicing fee, while Class I shares do not incur distribution or servicing fees.
Generally, the minimum initial investment is $2,500 for Class S, Class D, and Class T, and the minimum initial investment for Class I shares is $1 million.
Class S and Class T shares will be available to the general public through selling agents and other financial intermediaries. Class D shares will generally be available for purchase through fee-based programs, also known as wrap accounts, and Class I Shares to endowments, foundations, pension funds and other institutional investors, as well as through participating broker-dealers and certain registered investment advisers.
PGIM Investments LLC, an indirect wholly-owned subsidiary of Prudential Financial, serves as the fund’s investment manager and will provide administrative and management services to the fund. Its affiliate, PGIM Inc., serves as sub-adviser and will provide day-to-day management of the fund’s portfolio, primarily through PGIM Real Estate, the real estate investment advisory business unit within PGIM. As of March 31, 2022, PGIM Investments’ total assets under management were approximately $345.3 billion, while PGIM managed approximately $1.4 trillion in assets.
Prudential Investment Management Services serves as the principal underwriter and distributor.