PGIM Real Estate, the real estate investment arm of Prudential Financial, has invested in a food storage and distribution center at 1 Buroh Lane in Singapore from its latest pan-Asia value add fund.
Financial details of the transaction were not disclosed.
The property acquired by the New Jersey-based investment manager consists of a multi-temperature controlled food storage and distribution center comprising approximately 646,000 square feet across five levels of warehouse space. The center includes freezer and refrigerated facilities and three levels of mezzanine office areas.
The property is situated within the Jalan Buroh food zone, considered a premiere food area due to its nearness to Jurong Fishery Port and several food processing facilities. The property also benefits from its proximity to Jurong Port, the International Business Park, Jurong Island and the Port of Singapore Authority Terminals.
“We believe that the demand for food storage and distribution facilities will continue to be resilient. Benefitting from a strong anchor tenant, 1 Buroh Lane should provide a sustainable and stable income stream over the next five to six years,” commented Benett Theseira, head of Asia Pacific for PGIM Real Estate.
PGIM Real Estate has professionals in 18 cities in the Americas, Europe and Asia Pacific with gross assets under management of $65.9 billion as of March 31, 2017.
The firm held a €580 million final close on its third Asia-focused value-added fund in May 2016 and manages a portfolio of over $7 billion across Asia Pacific.