PGIM Real Estate records strong momentum with US$1.4 billion of APAC transactions in Q1 2025
PGIM Real Estate has expanded its Asia Pacific portfolios by investing in quality assets with a strong focus on diversification across Japan and Australia.
PGIM Real Estate and Anton acquire Sydney CBD office to grow Asia Pacific value-add portfolio
SYDNEY, 12 Feb. 2025 – PGIM Real Estate and Anton Real Estate Partners (“Anton”), a subsidiary of Proprium Capital Partners, have formed a joint venture to acquire the prime office building 20 Bridge Street in Sydney’s central business district. The investment was made on behalf of PGIM Real Estate’s flagship Asia Pacific value-add strategy.
20 Bridge Street is situated in the heart of Sydney’s core financial district, with proximity to the revitalised Circular Quay precinct and a multitude of transport and amenity offerings. The 13-storey property offers approximately 20,150 square metres of net lettable area (NLA), with key features including a strong street presence, large efficient floor plates of 1,500 square metres around a central core design.
The scheduled departure of anchor tenant ASX provides the opportunity to redefine a landmark commercial asset, by delivering on a strategic upgrade program, with a particular focus on enhancing the plaza arrival experience with customer service and hospitality offerings, consistent with the momentum of the transforming precinct.
This deal marks the return of both firms to the office sector after several years on the sidelines as values corrected. Healthy demand driven by increasing office utilisation rates and limited future supply favours an improved market outlook for the sector.
Steve Bulloch, head of Australia, PGIM Real Estate, said, “The office sector in Australia has been more resilient than most global office markets, but we see a similar trend in terms of the flight to quality. The asset’s strong location, coupled with the significant repositioning plan, allows for us to represent a high-quality asset back to the market but at competitive rents compared to the nearby premium towers.
Building on the momentum from PGIM Real Estate’s strategic investments in Australia’s logistics and living assets last year, we have been very thoughtful about choosing the right reentry point to the office sector and believe the current timing is right.”
Tony Martin, partner, Anton Real Estate Partners commented, “Delivering significant enhanced value to 20 Bridge Street through our comprehensive repositioning and upgrade program is only part of the story. With this prime office building, we have a unique ability to meet the requirements and demands of corporate tenants in Australia, which are really focused on a ‘flight-to-quality’ strategy for their offices, demanding best in class space, operational standards, sustainability, amenities and services and all in first class locations.
With the very limited supply and strong increasing demand in Sydney’s prime core office market, we have acquired an attractive asset in the best location with enormous repositioning potential that we will deliver on. It’s a hugely compelling proposition”.
PGIM Real Estate is the US$212 billion real estate investment and financing business of PGIM, the US$1.38 trillion1 global investment management business of Prudential Financial, Inc. (NYSE: PRU).
Anton Real Estate Partners Pty Limited, a subsidiary of Proprium Capital Partners and owned in conjunction with local Partners Tony Martin and Anthony Kingsley, is an Australian real estate operating partner focused on diversified real estate strategies centered around an opportunistic acquisition playbook and value enhancing initiatives across Australian/New Zealand markets.
ABOUT PGIM REAL ESTATE
With US$212 billion in gross assets under management and administration,2 PGIM Real Estate provides investors and borrowers access to a range of real estate equity, real estate debt, agriculture, and impact solutions across the risk-return spectrum.
PGIM Real Estate is a business of PGIM, the global asset management business of Prudential Financial, Inc. (NYSE: PRU). PGIM Real Estate’s risk management approach, execution capabilities and industry insights are backed by a 50-year legacy of investing in commercial real estate, a 140-year history of real estate financing,3 and the local experience of professionals in 32 cities globally. Through its investment, financing, asset management, and talent management approach, PGIM Real Estate engages in practices that strive to ignite positive environmental and social impact, while pursuing activities that seek to strengthen communities around the world. For more information visit pgimrealestate.com.
ABOUT PGIM
PGIM is the global asset management business of Prudential Financial, Inc. (NYSE: PRU). In 42 offices across 19 countries, our more than 1,400 investment professionals serve both retail and institutional clients around the world.
As a leading global asset manager, with US$1.38 trillion in assets under management, PGIM is built on a foundation of strength, stability, and disciplined risk management. Our multi-affiliate model allows us to deliver specialised expertise across key asset classes with a focused investment approach. This gives our clients a diversified suite of investment strategies and solutions with global depth and scale across public and private asset classes, including fixed income, equities, real estate, private credit, and other alternatives. For more information, visit pgim.com.
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. For more information please visit news.prudential.com.
ABOUT PROPRIUM CAPITAL PARTNERS
A spin out of the Morgan Stanley Real Estate Special Situations team, the Proprium principals have been investing in real estate operating companies since 1996, focusing on scalable themes with experienced local partners and platforms. Proprium’s strategy of platform investing seeks to deliver private equity returns in the real estate industry. Proprium manages funds on behalf of over 50 institutional investors across the globe, including government and private sector pension and retirement funds, banks, family offices and sovereign wealth funds. Today, Proprium has grown to over USD$4 billion of net assets under management with a global platform of six offices across the US, Europe, and Asia Pacific. Further information can be found at www.proprium.com.
1 As of 30 Dec. 2024.
2 As of 30 Sept. 2024. Net AUM is US$137 billion and AUA is US$47 billion.
3 Includes legacy lending through PGIM’s parent company, PFI.
For Professional Investors only. All investments involve risk, including the possible loss of capital.
© 2025 PGIM Real Estate is the real estate investment management business of PGIM, the principal asset management business of Prudential Financial, Inc. (“PFI”), a company incorporated and with its principal place of business in the United States. PGIM is a trading name of PGIM, Inc. and its global subsidiaries. PGIM, Inc. is an investment adviser registered with the US Securities and Exchange Commission (the “SEC”). Registration with the SEC does not imply a certain level of skill or training. 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. Prudential, PGIM, their respective logos and the Rock symbol are service marks of PFI and its related entities, registered in many jurisdictions worldwide. In the United Kingdom, information is issued by PGIM Limited with registered office: 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). In the European Economic Area (“EEA”), information is issued by PGIM Luxembourg S.A. with registered office: 2, Boulevard de la Foire, L-1528 Luxembourg. PGIM Luxembourg S.A. is authorised and regulated by the Commission de Surveillance du Secteur Financier (the “CSSF”) in Luxembourg (registration number A00001218) and operating on the basis of a European passport. These materials are issued by PGIM Limited and/or PGIM Luxembourg S.A. to persons who are professional clients as defined under the rules of the FCA and/or to persons who are professional clients as defined in the relevant local implementation of Directive 2014/65/EU (MiFID II). PGIM operates in various jurisdictions worldwide and distributes materials and/or products to qualified professional investors through its registered affiliates including, but not limited to: PGIM Real Estate (Japan) Ltd. in Japan; PGIM (Hong Kong) Limited in Hong Kong; PGIM (Singapore) Pte. Ltd. in Singapore; PGIM (Australia) Pty Ltd in Australia; PGIM Luxembourg S.A.; and PGIM Real Estate Germany AG in Germany. For more information, please visit pgimrealestate.com.
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