Real estate investment manager PGIM Real Estate expanded its Asia Pacific (Apac) portfolio in 1Q2025, recording new investments across the living, industrial, hotel, data centre and office sectors in Japan and Australia. In a May 7 press release, the firm, a unit of Prudential Financial, says it logged eight transactions valued at close to US$1.4 billion ($1.81 billion) last quarter, including six transactions worth approximately US$900 million.
The bulk of the deals were in Japan. Notable acquisitions include a corporate retreat facility with 70 rooms and facilities in Izu, southwest of Greater Tokyo; a portfolio of four multifamily properties with 278 residences and one retail unit in Central Tokyo; and a greenfield data centre site in eastern Osaka.
PGIM Real Estate also recorded the sale of an office and retail mixed-use asset in Omotesando in January. It had acquired the nine-storey building with 9,000 sq m of net lettable area just four months earlier.
In Australia, the firm acquired a 13-storey office building on Bridge Street in the Sydney CBD. It acquired the building in partnership with Anton Real Estate Partners for A$270 million ($230 million) from Hong Kong tycoon Francis Choi in February.
The same month, PGIM Real Estate also partnered with Australian fund manager KM Property Funds to buy an industrial and logistics estate in Yatala, Queensland. The purchase price is said to be about A$100 million.
Bennet Theseira, PGIM Real Estate’s head of Asia Pacific, says that the region has shown resilience despite heightened uncertainty in the macro environment. “We are at the right point of the cycle for investors to seek high quality properties at attractive entry prices,” he adds.
Theseira notes that supply-demand imbalance is creating compelling opportunities in the living sector and data centres, particularly in Japan and Australia. “Meanwhile, the differentiated resurgence in office and retail demand as well as the burgeoning hotel market are also presenting tactical opportunities,” he continues.
According to PGIM Real Estate, it has logged transactions totalling US$36.9 billion in Apac since its inception in 1994. It currently has US$206 billion in gross assets under management and administration worldwide.
