The fourth in PGIM Real Estate’s series of Asia Pacific value-add funds, AVP IV, has raised US$970 million, and is in advanced discussions for additional commitments that would take the capital raise to over US$1 billion. The capital raise far exceeds its original target as investors see a significant opportunity in the region’s recovery from the COVID-19 pandemic. PGIM Real Estate is the real estate investment and financing business of PGIM, the US$1.4 trillion global investment management business of Prudential Financial, Inc. (NYSE: PRU).
“The successful fund raise demonstrates continued confidence in our platform’s ability to deliver attractive risk adjusted returns and the belief that the Asia Pacific region is poised to lead the global recovery from the COVID-19 crisis,” said Benett Theseira, head of Asia Pacific for PGIM Real Estate. PGIM Real Estate has been investing in core, core-plus and value-add strategies across the Asia Pacific region since 1984.
AVP IV will invest in distinct and executable value-add and selective opportunistic strategies across Asia Pacific real estate, including office, logistics, residential and retail, in both mature and emerging markets. With offices in Singapore, Tokyo, Shanghai, Hong Kong, Seoul and Sydney, AVP IV will leverage PGIM Real Estate’s strong local presence and track record of executing high-quality investments across multiple sectors in the region.
“In addition to retaining a substantial number of clients who have invested with us in our prior funds, our proven track record across the fund series and in the region has allowed us to broaden our client base, attracting new investors from Europe and Asia Pacific,” said David Fassbender, portfolio manager for the value-add fund series and head of Southeast Asia for PGIM Real Estate.
Since the first fund in the series launched in 2003, PGIM Real Estate’s Asia Pacific value-add funds have carried out over 60 transactions across all of the major sectors and nine markets in Asia Pacific, representing acquisitions and developments worth more than US$7 billion. The series has raised nearly
US$3.7 billion in capital across its four funds.