A fund managed by global investment giant PGIM is facing a potential loss after a company that owes it £102M went into administration.

An administrator’s report for the company that owns the Bradstowe House build-to-rent block in Harrow, north west London, said that the amount repaid to the debt fund managed by PGIM would depend on how much the scheme is sold for.

Pramerica Real Estate Capital IV is the mezzanine lender to the scheme, according to a report from partners at Interpath. Interpath said the debt facilities outstanding to the fund at the time of its appointment totalled £102M. That includes loan fees and interest.

Senior lender Norddeutsche Landesbank Girozentrale is owed £25M. As senior lender, it will be repaid first.

Interpath appointed Savills to sell the 177-unit BTR scheme for £58M in May, EG reported. Interpath said that it expected Nord to be repaid in full, but the amount PGIM’s fund would be repaid depended on how much the block sold for.

Nord called in the administrators in October 2023 after its loan matured without being repaid.

Bradstowe House was developed by Irish developer Comer. Construction began in 2008 but stalled for several years after Irish lender Bank of Ireland pulled funding during the credit crunch.

A new £23M loan from Investec restarted construction in 2013, and Nord and PGIM refinanced the project in 2015 and 2016.

The scheme is near fully leased, Interpath said, and is managed on a fee basis by Greystar. It produced net operating income ranging from £156K to £214K between October last year and March this year, according to the Interpath report.

Pramerica Real Estate Capital IV raised €820M (£699M) of equity from investors in 2013, with a mandate to invest in debt secured against European real estate.

PGIM declined to comment.