PGIM Real Estate raises US$447m for open-ended Asia core fund

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PGIM Real Estate has raised US$447m in equity commitments from the first closing of its open-ended Asia Core fund, prioritising assets with defensive income qualities.

Benett Theseria (image: PGIM)

The diversified fund will invest in the office, retail, industrial and residential asset classes in key cities throughout Japan, Australia, Singapore, Hong Kong, South Korea and China, the firm said in an announcement.

The Asian vehicle completes PGIM Real Estate’s global open-ended core offering, following the launch of its €304m European core fund earlier this year.

“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-end funds in the region,” said Benett Theseira, head of Asia Pacific for PGIM Real Estate.

PGIM Real Estate, which has been active in the region since 1994, raised equity capital for the Asian fund from American, Canadian, German, Swiss and Japanese investors.

The newly launched fund has already invested in a US$290m portfolio comprising four seed assets across the multifamily residential, office and retail sectors in Tokyo, Seoul and Sydney.

“We look forward to building a truly diversified portfolio of assets that prioritises defensive income, while capturing the growth within this dynamic region,” said Vincent Chew, portfolio manager for PGIM Real Estate’s Asia Pacific core strategy.

The launch is the latest from global investors looking to take advantage of the real estate opportunities across the Asia Pacific region. 

Last month, US-headquartered Angelo, Gordon & Co announced the launch of its AG Asia Realty Fund IV, having raised S$1.3bn in equity commitments to invest in markets across the region. 

Singapore-based SC Capital Partners (SCCP) raised US$850m in the final closing of its fifth discretionary Asia-focused real estate fund, Real Estate Capital Asia Partners V (RECAP V), in May.

PGIM Real Estate is the real estate investment business of PGIM, which is the US$1 trillion investment manager of US-headquartered Prudential Financial.

PGIM has US$173.5bn in gross real estate assets under management and administration.