The global asset manager has acquired a 19-storey apartment in Shanghai and partnered with Point Capital in Australia
Global asset manager PGIM Real Estate has increased its exposure to rental residential in Asia Pacific and Australia. In China, the firm has entered a partnership with a domestic rental apartment operator to acquire a 19-storey purpose-built apartment building in Shanghai to provide 500-plus apartments. The Shanghai Baoshan Powerlong City development was bought from Hong Kong-based developer Powerlong.
In Australia, PGIM Real Estate established a partnership with Point Capital, a real estate investment firm that specialises in modular construction. The initial assets of the platform are two projects in Brisbane and Sydney’s West, with a combined value of around A$300m. The Australian venture aims to develop a further two to three projects of similar size. The total value of assets on completion will be around A$750m.
“Our JV with Point Capital presents a very exciting opportunity as it will deliver much-needed rental stock into a significantly undersupplied residential rental market in Australia,” said Steve Bulloch, managing director and head of Australia, PGIM Real Estate.
Benett Theseira, head of Asia Pacific, PGIM Real Estate said shifting demographic trends and worsening homeownership affordability were driving demand for rental housing across major cities. “Institutional investors like us can play a pivotal role in fostering the growth of this sector by providing an attractive and affordable housing solution for young professionals and other renters in the region.”
