Skip to main content
PGIM LogoPGIM Logo
    • Megatrends
    • Annual Best Ideas
    • OutFront Series
    • Quarterly Market Outlooks
    • Vantage Point Series
    • Market Events
    • Thought Leadership
    • Events & Webinars
    • Video Library
    • Podcasts
    • Investing in Alternatives
    • Risk Management
    • ESG Investing
    • Opportunities in EM
  • Alternatives

    • PGIM Private Alternatives
    • PGIM Private Capital
    • PGIM Real Estate
    • Montana Capital Partners (PE)

    Equity & Fixed Income

    • PGIM Fixed Income
    • Jennison Associates

    Solutions

    • PGIM DC Solutions
    • PGIM Multi-Asset Solutions
    • PGIM Quantitative Solutions

    Intermediary Distribution

    • PGIM Investments
    • Clients We Serve
    • Defined Contribution
    • Financial Advisors
    • Institutional Relationships
    • Global Locations
    • Contact Us
    • Overview
    • Leadership
    • History
    • Our Businesses
    • Diversity, Equity & Inclusion
    • Global Locations
    • Contact Us
    • Subscribe
    • Request for Information
    • Careers at PGIM
    • Job Opportunities
    • All News
    • Press Releases
    • In the News
    • Facts & Figures
    • Media Contacts
APAC Infrastructure

Building Asia-Pacific’s Future

Building Asia-Pacific’s Future

Investing in Infrastructure

  • Download research

Introduction

No matter how the trade landscape evolves, it has become clear that many economies in Asia-Pacific are emerging as beneficiaries from a global realignment in supply chains. To support burgeoning trade relationships and broader economic growth, significant investments across the region’s infrastructure space—spanning transportation, housing, data centers, manufacturing, and logistics—will be required.

Global infrastructure AUM stood at
$325B
in 2016 and is forecast to hit $1.7T by 2028

By taking a broad view of infrastructure as an asset class, investors can unearth diverse opportunities that emerge in the next chapter of global trade. There are four underlying themes to consider when assessing the infrastructure landscape in Asia-Pacific:

1. Asia-Pacific countries have unique infrastructure needs and challenges.

2. Four Ds are driving major change: demographics, deglobalization, digitization and decarbonization.

3. Infrastructure financing flows through both public and private markets.

4. Digital infrastructure is a fast-growing sector in Asia-Pacific, driven by AI and the cloud.

Dive deeper

Rapid growth in and around state capitals will require a variety of infrastructure improvement programs.

• The living sector—including student housing, nursing homes and co-living—is rife with potential amid an affordability crisis.

• The investment case for logistics appears strong as populations and e-commerce demand grow in tandem, driving companies to seek new warehouses that can serve major cities.

• The supply-demand imbalance in data centers is most pronounced in developed markets such as Australia, where land constraints in places like Sydney make rents favorable to investors.

The transformation of global trade and an aging workforce are central to the infrastructure outlook.

• Labor shortages and new overtime rules for truck drivers have become major considerations in the location of new builds, as well as the conversion of older infrastructure, as companies seek modernized logistics facilities capable of implementing automation.

• Major tech companies have pledged to invest billions of dollars in Japan to expand AI and cloud infrastructure, supporting a positive outlook for data centers.

• Japan’s real estate market is an appealing investment destination amid healthy yield spreads, market stability, and still-low interest rates.

Shifting trade patterns, the digitization of the global economy, and the quest for reliable chip production are central themes.

• Countries with an established factory sector and existing trade ties with the West are well positioned to capitalize on the fragmentation of the global economy.

• Data center growth is strong in up-and-coming markets like Malaysia amid supply constraints in Singapore, which remains a major hyperscale market that offers attractive rents for investors.

• Urban population growth in major cities such as Singapore is increasing demand for rental housing to address supply shortages and affordability challenges.

Urbanization, electrification, and increased manufacturing activity are part of India’s growth story.

• Electrical buildout, the need for better roads and airports, and an improved rail network will all be part of the infrastructure push that will be paramount in helping India achieve its lofty economic goals.

• Infrastructure opportunities should arise from an increase in air traffic and tourism. For such a large country, the penetration rate for flying remains small.

• Many industrial companies anticipate strong growth, and expanding manufacturing capacity will no doubt lead to a corresponding surge in power demand and related infrastructure needs.

The realignment of global supply chains creates a void to be filled. In Asia-Pacific, investors have to be nimble as new infrastructure needs emerge.
Magdalena PolanHead of Emerging Market Macroeconomic ResearchPGIM Fixed Income

PGIM'S INVESTMENT STRATEGIES

PGIM offers clients diversified solutions with global depth and scale across public and private asset classes, including fixed income, equities, real estate, private credit and other alternatives. Strategies that have a significant focus on infrastructure include:

Global Infrastructure – Listed Equities

Jennison’s Global Infrastructure Strategy invests in a diversified portfolio of high-quality listed infrastructure companies that exhibit above-average levels of free cash-flow growth and whose fundamentals are underappreciated by the market. Jennison has been investing in infrastructure companies for over 15 years and is a pioneer in utility investing, managing one of the largest utility strategies in the US since the 1990s.

 

Learn more

REAL ESTATE – DATA CENTERS

In 2023, PGIM Real Estate launched its data center strategy, investing primarily in hyperscale global data centers worldwide. PGIM Real Estate has invested in data centers with a total value of over $900 million completed in partnerships with leading data center operators, including Equinix.

Learn more

CARBON SOLUTIONS

Jennison’s Carbon Solutions takes a differentiated, comprehensive alpha-based approach to decarbonisation with a concentrated portfolio of 45-65 companies. With a global, all-cap multi-sector universe, the strategy seeks to invest across a broad range of companies, particularly where the contribution to decarbonisation and likely future growth are being underestimated.

Learn more

Global Infrastructure Debt

PGIM Private Capital manages infrastructure-focused strategies for institutional investors. The strategies invest in investment-grade and below investment-grade private debt in infrastructure sectors including renewable energy, power generation and transmission, midstream energy and transportation, social and digital infrastructure worldwide, as well as a range of other real assets concerns.

 

You may also like

  • Insights

    • Megatrends
    • Annual Best Ideas
    • OutFront Series
    • Quarterly Market Outlooks
    • Market Events
    • Thought Leadership
    • Events & Webinars
    • Video Library
    • Podcasts
  • Investment Themes

    • ESG Investing
    • Investing in Alternatives
    • Investing in Emerging Markets
    • Risk Management
  • Our Businesses

    • PGIM DC Solutions
    • PGIM Fixed Income
    • PGIM Investments
    • PGIM Multi-Asset Solutions
    • PGIM Private Alternatives
    • PGIM Private Capital
    • PGIM Real Estate
    • Montana Capital Partners (PE)
    • PGIM Quantitative Solutions
    • Jennison Associates
  • Clients

    • Clients We Serve
    • Defined Contribution
    • Financial Advisors
    • Institutional Relationships
  • About

    • Overview
    • Leadership
    • History
    • Diversity, Equity & Inclusion
    • Global Locations
    • Contact Us
    • Subscribe
    • Request for Information
  • Careers

    • Careers at PGIM
    • Job Opportunities
  • Newsroom

    • All News
    • Press Releases
    • In The News
    • Facts & Figures
    • Media Contacts
PGIM Logo
  • Terms & Conditions
  • Privacy Center
  • Accessibility Help
  • UK Regulatory Disclosures
  • Netherlands Regulatory Disclosures
  • Canadian Regulatory Disclosures
  • Ireland Gender Pay Gap Report
  • Cookie Preference Center

For Professional Investors only.* All investments involve risk, including the possible loss of capital.

This material is for informational and educational purposes only and should not be construed as investment advice or an offer or solicitation in respect of any products or services to any persons who are prohibited from receiving such information under the laws applicable to their place of citizenship, domicile or residence. PGIM is the principal asset management business of Prudential Financial, Inc. and a trading name of PGIM, Inc. and its global subsidiaries. PGIM, Inc. is a registered investment adviser with the U.S. Securities and Exchange Commission (“SEC”). Registration with the SEC does not imply a certain level of skill or training.

The information on this website is not intended as investment advice and is not a recommendation about managing or investing your retirement savings. In making the information available on this website, PGIM, Inc. and its affiliates are not acting as your fiduciary.    

In the United Kingdom, this website may be issued by PGIM Private Alternatives (UK) Limited or PGIM Private Capital Limited.  In the European Economic Area (“EEA”), this website may be issued by PGIM Private Capital (Ireland) Limited or PGIM Luxembourg S.A. or PGIM Real Estate Germany AG.

PGIM, Inc. has its headquarters at 655 Broad Street, Newark, NJ 07102. PGIM Private Capital (Ireland) Limited has its registered office at IDA Business Park, Letterkenny, Co. Donegal, F92 FP83, Ireland. PGIM Private Capital (Ireland) Limited is authorised and regulated by the Central Bank of Ireland and registered in Ireland under company number 635793 operating on the basis of a European passport. PGIM Limited and PGIM Private Alternatives (UK) Limited have their registered offices at Grand Buildings, 1-3 Strand, Trafalgar Square, London WC2N 5HR. PGIM Limited is authorised and regulated by the Financial Conduct Authority (“FCA”) of the United Kingdom (Firm Reference Number: 193418). PGIM Private Alternatives (UK) Limited is authorised and regulated by the FCA of the United Kingdom (Firm Reference Number: 181389). PGIM Private Capital Limited has its registered address at 1 London Bridge, London SE1 9BG and is authorised and regulated by the FCA of the United Kingdom (Firm Reference Number: 172071). PGIM Luxembourg S.A., Netherlands Branch is registered with the Netherlands Chamber of Commerce under number 85998877 and has its local offices at Gustav Mahlerlaan 1212, 1088LA Amsterdam, The Netherlands. PGIM Luxembourg S.A. has its registered address at 2 Boulevard de la Foire, L-1528 Luxembourg and is authorised and regulated by the Commission de Surveillance du Secteur Financier (“CSSF”) in Luxembourg (registration number A00001218). PGIM Real Estate Germany AG has its registered address at Wittelsbacher Platz 1, 80333 Munchen, Germany and is authorised and regulated by Bundesanstalt für Finanzdienstleistungsaufsicht (“BaFin”) in Germany (registration number 10138142).

In Japan, information is provided by PGIM Japan Co., Ltd. (“PGIM Japan”) and/or PGIM Real Estate (Japan) Ltd. (“PGIMREJ”).  PGIM Japan, a registered Financial Instruments Business Operator with the Financial Services Agency of Japan offers various investment management services in Japan.  PGIMREJ is a Japanese real estate asset manager that is registered with the Kanto Local Finance Bureau of Japan.

In Hong Kong, information is provided by PGIM (Hong Kong) Limited, a regulated entity with the Securities & Futures Commission in Hong Kong to professional investors as defined in Section 1 of Part 1 of Schedule 1 of the Securities and Futures Ordinance (Cap. 571). In Singapore, information is issued by PGIM (Singapore) Pte. Ltd. (“PGIM Singapore”), a regulated entity with the Monetary Authority of Singapore under a Capital Markets Services License to conduct fund management and an exempt financial adviser. This material is issued by PGIM Singapore for the general information of “institutional investors” pursuant to Section 304 of the Securities and Futures Act 2001 of Singapore (the “SFA”) and “accredited investors” and other relevant persons in accordance with the conditions specified in Section 305 of the SFA. In South Korea, information is issued by PGIM, Inc., which is licensed to provide discretionary investment management services directly to South Korean qualified institutional investors on a cross-border basis.   

Prudential Financial, Inc. (“PFI”) of the United States is not affiliated in any manner with Prudential plc, incorporated in the United Kingdom or with Prudential Assurance Company, a subsidiary of M&G plc, incorporated in the United Kingdom. 

*PGIM.com/Podcasts and its content is intended for informational or educational purposes only and is not directed exclusively to Professional Investors. 

PGIM Logo
PGIM Logo

You are viewing this page in preview mode.

Edit Page