M&G Investment has raised EUR 343 mln for a mezzanine debt real estate fund. The European institutional investor announced this week that the final tally was achieved following three closings for the M&G Real Estate Debt Fund.

A range of institutions across Europe and the US have committed assets to the fund.

The fund is seeking double-digit, unlevered returns over its seven-year life. It will provide junior commercial mortgages against all property types in Western Europe, including the UK. Seven investments have been made so far, including transactions in the UK, Germany and Spain, and two additional loans are expected to complete in July. The portfolio has included loans on office, retail and industrial property but hotel and student accommodation transactions have also been considered.

M&G said it is one of the few lenders in the market able to provide a ‘one stop’ solution to borrowers, and has already undertaken a number of transactions. M&G will consider loans in the 80% loan-to-value range.