PGIM Real Estate grows its rental housing portfolio in Asia Pacific
The global asset management company PGIM Real Estate, a global asset manager has strengthened its rental housing investments across Asia Pacific (Apac) with strategic acquisitions and the launch of new initiatives across Australia, Mainland China and Hong Kong. The assets were purchased to support its value-add, core and core-plus strategies within Apac.
“The residential sector of Apac is extremely under-supplied and has a strong opportunities for investors to grow,” says Benett Theseira the director for Asia Pacific at PGIM Real Estate.
Within Australia, PGIM Real Estate has purchased the acquisition of two properties together along with Point Capital, an Australian real private equity, real estate and funds management company. The properties are located within Brisbane and Sydney and each comprises around 300 apartments. The aim of the joint venture is to pursue other projects similar to the ones it has already completed and eventually aim for an inventory of 1,250 to 1500 apartments when it is completed.
Then, in China, PGIM Real Estate has formed a partnership with a local business to purchase a 19-story rental apartment in Shanghai that has more than 500 units. Then, in Hong Kong, PGIM Real Estate purchased two hotel properties in the year 2022 The 29th floor Weave Studios in Kowloon West as well as the 22-storey Dash Living on Hollywood Road located on Hong Kong Island — and transformed the properties into apartments for co-living in the year that is currently underway.
The recent acquisitions of PGIM Real Estate represent a major expansion of other market for the Apac rent-to-own housing collection that prior to this consisted of multifamily assets in Japan. “We anticipate that this sector will give the steady returns and income investors are looking for in a volatile and inflationary economic environment,” Theseira remarks.