PGIM Real Estate launches open-ended Asia Core fund
PGIM Real Estate has completed the initial close of the PGIM Real Estate Asia Core fund (Asia Core), an open-ended, diversified fund with a total of USD447 million in equity capital from American, Canadian, German, Swiss and Japanese investors.
The launch of Asia Core completes PGIM Real Estate’s global suite of core open-ended real estate funds and follows the €304m European Core fund launched earlier this year.
PGIM Real Estate is the real estate investment business of PGIM, the USD1 trillion global investment management businesses of US-headquartered Prudential Financial, Inc. (NYSE: PRU), and has been a market leader in open-ended fund management since it launched its flagship open-ended core real estate strategy in the US in 1970.
Asia Core has a diversified strategy investing in the key cities of Japan, Australia, Singapore, Hong Kong, South Korea and China, across the office, retail, industrial and residential sectors. Since its inception, the fund has already invested in a USD290 million portfolio of four seed assets in Tokyo, Seoul and Sydney across the multifamily residential, office and retail sectors.
“Asia Core will capitalise on the long-term track record, scale and discipline of PGIM Real Estate’s Asia Pacific platform, which has been active in the region since 1994,” says Benett Theseira, head of Asia Pacific for PGIM Real Estate. “This initial close is an early, yet significant, step in growing the fund and expanding our investor base to become the market leader of core open-ended funds in the region.”
“We appreciate our clients’ confidence in our ability to deliver strong risk-adjusted returns through Asia Core,” adds Vincent Chew, portfolio manager for PGIM Real Estate’s Asia Pacific core strategy. “We look forward to building a truly diversified portfolio of assets that prioritises defensive income, while capturing growth within this dynamic region.”