Perennial Real Estate, a Singapore-based real estate investment firm led by founder Pua Seek Guan, has stepped up its China and Singapore real estate investment funds activities.
Former CapitaLand executive Pua, who launched Perennial in 2008, said the firm had closed on $176 million for a Chinese shopping mall fund. Investment in the vehicle came from domestic investors, including Beijing Hualian Group, a large Chinese retailer.
Pua told Reuters in an interview that Perennial would market a similar fund to international investors.
He said the country’s “growing consumer demand” was behind the firm’s decision to expand in the sector. “There is no shortage in the pipeline (and) we can still buy malls at good valuations,” he told Reuters.
The Perennial funds will exit their assets to Beijing Hualian Department Store, the Shenzhen-listed retail company once the assets can demonstrate stable returns. According to the report, Beijing Hualian Department Store is currently in the process of being renamed to reflect its status as a REIT vehicle.
In addition to the Chinese funds, Perennial is also seeking to raise a vehicle of more than $200 million to invest in Singapore’s retail sector. This fund would invest in developments and underperforming completed assets.
Pua is well known for building CapitaLand’s shopping mall business and for exiting assets via real estate investment trusts.