PGIM Real Estate has invested US$400 million in the housing rental markets in Hong Kong, mainland China and Australia, as the US asset manager sees huge growth in these segments and opportunities to snap up assets at deep discounts amid a challenging business environment.
“The living sector has increasingly become a big thing for us,” said Benett Theseira, managing director and head of Asia-Pacific, at PGIM Real Estate.
“Increasingly we see this growing need for rental housing, and especially in cities where the cost of residential buying has become really high. And because of that we see this growing need for residential rental housing in cities like Singapore, Hong Kong, Shanghai, and in Sydney and Melbourne in Australia.”
“Hence the opportunity to invest in that provides a good investment return and also the opportunity to provide a product to this demographic of young professionals … so we can contribute to creating a good quality product and affordable product for them, which is why we went well into the sector,” he added.
In mainland China, PGIM Real Estate has partnered with a domestic rental flat operator to acquire a 19-storey purpose-built flat building in Shanghai. The property comprises over 500 flats and provides common areas and facilities including a gymnasium and a resident’s lounge.
In Australia, PGIM has formed a joint venture with a property developer to develop a portfolio of residential properties for rent in major cities to ease a hugely undersupplied housing market. The partnership aims to have a portfolio of as many as 1,250 flats, according to PGIM. Source: SCMP
