Pramerica consolidates Asia retail assets into S$3bn fund

Pramerica Real Estate Investors is to manage its first open-ended real estate fund in Asia after consolidating 11 assets previously held by its series of Asia retail funds.

The real estate investment management and advisory arm of US insurance giant Prudential Financial has consolidated S$3 billion (€1.72 billion; $2.34 billion) of retail real estate in Asia into one large investment fund.

Pramerica Real Estate Investors (PREI) said today it had closed a private, open-ended property fund called Pramerica AsiaRetail after consolidating 11 retail assets comprising more than 3 million square feet in Singapore and Malaysia that were held in its Asian Retail Mall funds series. The firm said the portfolio reflected the second largest collection of shopping centres in Singapore.

PREI said the move to consolidate its retail fund series into one open-ended vehicle, the firm’s first in the region, was made on behalf of the fund series’ investor base which was looking to “take advantage of opportunities in Asia’s growing retail sector.”

Victoria Sharpe, chief executive officer of PREI in Asia, said: “Through our first private open-end fund in Asia, we’re proud to combine Pramerica’s 40 years of experience in managing open end property funds with 10 years of local retail expertise in Southeast Asia. As one of the largest funds in the region, this offers a unique solution that addresses the complex investment needs of our high calibre clients.”

PREI said Pramerica AsiaRetail’s seed portfolio comprises core, suburban assets including Tiong Bahru Plaza, Century Square Shopping Centre, Hougang Mall, White Sands Shopping Centre, Tampines 1, Liang Court and Central Plaza in Singapore, Kinta City Shopping Centre, Island Plaza, SSTwo Mall and 1st Avenue Mall in Malaysia.

The firm said the fund’s assets would provide “secure income, underpinned by strong real estate fundamentals, including proximity to rapid transit stations and stable tenants.” It added the fund would be used to expand, hold and actively manage the assets over the medium  to long-term “seeking to maximise returns for institutional investors interested in investment exposure in the Singapore and Malaysia markets.”

PREI has been in Asia since 1994 in which time it has built a real estate investment management platform of more than $6.9 billion in net assets under management as of 30 June this year. The firm manages about $30.3 billion in net assets globally.