PGIM Real Estate completes US$1.4 billion in Asia Pacific transactions during Q1 2025; acquisitions include data centers, hotels and residential properties across Japan and Australia

May 8, 2025 (press release) –

Key Highlights:

* PGIM Real Estate recorded US$1.4 billion of APAC transactions in Q1 2025, driven by strong momentum in the region.

* The company acquired a corporate retreat facility in Izu, Japan , to convert into an upscale hotel under an international brand.

* PGIM Real Estate added a prime multifamily portfolio of four residential properties in Central Tokyo , reiterating its strong conviction in the living sector.

* The company acquired a site in eastern Osaka for a four-story, 48-megawatt IT load data center building, suitable for cloud and artificial intelligence workloads.

* PGIM Real Estate expanded its office and industrial footprint in Australia with the acquisition of 20 Bridge Street in Sydney's central business district and a prime industrial and logistics estate in Yatala, Queensland.Original Press Release:

TOKYO and SINGAPORE , May 7 -- PGIM Real Estate issued the following news release:

PGIM Real Estate has recorded a strong start to 2025, with eight transactions valued at close to US$1.4 billion ,[1] including approximately US$900 million in six acquisitions. This sustains its robust investment momentum from 2024 as the company capitalizes on the real estate market recovery to grow its regional real estate equity and debt strategies.

PGIM Real Estate has expanded its Asia Pacific portfolios by investing in quality assets with a strong focus on diversification across the living, industrial, hotel, data center and office sectors in Japan and Australia this year. Catering to institutional and private wealth investors’ needs, its investment strategies span the risk-return spectrum — from Asia Pacific real estate debt and core equity to value-add opportunities and global data centers.

Benett Theseira , head of Asia Pacific at PGIM Real Estate , commented: “Despite heightened uncertainty in the macro environment, we remain confident that 2025 is a good vintage to go into the next cycle of investing, especially with global real estate repricing now complete. Asia Pacific has been more resilient than other global regions. We are at the right point of the cycle for investors to seek high quality properties at attractive entry prices.”

“Our strong transaction momentum to start the year is a testament to PGIM Real Estate’s deep global and regional expertise, extensive network, and strong local sourcing and execution capability across Asia Pacific.”

Benett TheseiraHead of Asia PacificPGIM Real Estate

“From the growing living sector to the generational investment opportunity in data centers, the structural supply-demand imbalance is creating compelling long-term value 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. As the real estate markets recover, opportunities – both acquisitions and dispositions – are arising. Our strong transaction momentum to start the year is a testament to PGIM Real Estate’s deep global and regional expertise, extensive network, and strong local sourcing and execution capability across Asia Pacific,” he added.

Growing Japan portfolios across hotel, living, office and data centers

PGIM Real Estate recently acquired a corporate retreat facility in Izu, to the southwest of Greater Tokyo . Situated on an approximately 58,000-square-meter hilltop site, the facility comprises over 70 rooms, a swimming pool, tennis courts and beautifully landscaped gardens, offering breathtaking views of Sagami Bay and surrounding mountains, a striking landscape shaped by volcanic activity. Capitalizing on the robust tourism growth in Japan , it intends to convert the property into an upscale hotel under an international brand.

The company also added a prime multifamily portfolio of four residential properties in Central Tokyo , reiterating its strong conviction in the living sector. Ranging from six to 12 stories, the properties comprise a total of 278 multifamily units and one retail unit, which are all within 15 minutes from key business and commercial districts, with robust demand, high occupancy rates and accelerating rental growth.

In addition, the company acquired an office/retail mixed-use asset located in Omotesando. Situated in the heart of one of Japan’s most prime retail districts, the nine-story building offers approximately 9,000 square meters of net lettable area (NLA). Within just four months of the acquisition, PGIM Real Estate successfully captured the returns of the investment and sold the property in January 2025 .

The growing need for digital infrastructure continues to create a generational opportunity for data center investments, underpinned by strong structural demand. PGIM Real Estate’s global data center investment team acquired a site in eastern Osaka with the intention to develop and operate a four-story, 48-megawatt IT load data center building suitable for both cloud and artificial intelligence workloads. The site sits atop an approximately 17,000 square meters of freehold land, strategically located within the availability zones of several major hyperscalers in the second-largest yet supply-constrained data center market in Japan .

Expanding office and industrial footprint in Australia

In Australia , PGIM Real Estate acquired the prime office building 20 Bridge Street in Sydney’s central business district, marking its return to the office sector after several years on the sidelines as values corrected. The 13-story property offers approximately 20,000 square meters of NLA. With investors flighting to quality, the asset’s strategic location and significant repositioning potential are set to drive future rental growth.

PGIM Real Estate also acquired a prime industrial and logistics estate in Yatala, Queensland . Situated at 14 Dixon Street , Yatala, QLD, the estate is centrally located between Brisbane and the Gold Coast and highlights the strong appetite for high-quality industrial investment opportunities in Australia .

PGIM Real Estate has 30 years of local presence and a proven track record of real estate equity and debt investments in Asia Pacific , with transaction volume totalling US$36.9 billion since its inception in 1994.

ABOUT PGIM REAL ESTATE

PGIM Real Estate is the world’s third-largest real estate investment manager, with US$206 billion in gross assets under management and administration [2] and real estate professionals located in 35 cities worldwide. Built on our belief that strong performance is fueled by dynamic expertise, our global network of on-the-ground specialists is dedicated to opportunity creation, optimization, and timely capital deployment amid shifting market conditions.

Through our full suite of real estate equity and debt solutions, we aim to achieve exceptional outcomes on behalf of investors and borrowers. Our uncompromising commitment to building lasting relationships with our clients is founded on trust, transparency, and mutual respect. We strive to integrate sustainable best practices throughout our investment, asset management, risk and talent management processes for the benefit of our clients, employees, and the communities in which we operate. PGIM Real Estate is a business of PGIM, the global asset management business of Prudential Financial, Inc. (NYSE: PRU). For more information visit pgimrealestate.com.

ABOUT PGIM

PGIM is the global asset management business of Prudential Financial, Inc. (NYSE: PRU). In 41 offices across 19 countries, our more than 1,450 investment professionals serve both retail and institutional clients around the world.

As a leading global asset manager with US$1.39 trillion in assets under management,[3] PGIM is built on a foundation of strength, stability, and disciplined risk management. Our multi-affiliate model allows us to deliver specialized expertise across key asset classes with a focused investment approach. This gives our clients a diversified suite of investment strategies and solutions with global depth and scale across public and private asset classes, including fixed income, equities, real estate, private credit, and other alternatives. For more information visit pgim.com.

Prudential Financial, Inc. (PFI) of the United States is not affiliated in any manner with Prudential plc , incorporated in the United Kingdom , or with Prudential Assurance Company , a subsidiary of M&G plc , incorporated in the United Kingdom . For more information please visit news.prudential.com.

Footnote:

[1] This includes total development costs committed and capital expenditure of acquired assets.

[2] As of 31 Dec. 2024 . Net AUM is US$132 billion and AUA is US$47 billion . PGIM Real Estate is the third-largest real estate investment manager (out of 72 firms surveyed) in terms of global real estate assets under management based on Pensions & Investments’ “Largest Real Estate Investment Managers” list published October 2024 .

[3] As of 31 Mar. 2025 .

[Category: Real Estate, Financial Results]

Source: PGIM Real Estate