Theseira: Sydney presents attractive opportunities as assets have been repriced following rising interest and cap rates (Photo: Albert Chua/EdgeProp Singapore)
PGIM Real Estate, the global asset management division of New York Stock Exchange-listed Prudential Financial Inc, and Anton Real Estate Partners, a subsidiary of US private equity firm Proprium Capital Partners, are acquiring Exchange Square, the long-term headquarters of the Australian Securities Exchange (ASX) at 20 Bridge Street in Sydney’s CBD.
The two firms announced their joint agreement to purchase the property for A$270 million ($230 million) on behalf of PGIM Real Estate’s Asia Pacific value-add strategy in a joint press release on Feb 13.
The seller of 20 Bridge Street is Hong Kong tycoon Francis Choi Chee-ming, based on a report by the real estate investment platform Mingtiandi. Dubbed the “King of Toys”, Choi is the founder and chairman of Early Light International (Holdings), the world’s largest toy manufacturer. He has amassed real estate holdings in Hong Kong, China and Australia. Choi is ranked by Forbes as Hong Kong’s 10th richest person, with a net worth of US$8.1 billion ($10.8 billion) as of Feb 16.
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The property at 20 Bridge Street was placed on the market for sale last July at A$300 million, with Knight Frank as the exclusive agent. This was after the announcement that ASX was relocating its headquarters to 39 Martin Place when its lease expires.
PGIM Real Estate and Anton Real Estate Partners agreed to purchase 20 Bridge Street for A$270 million jointly (Photo: PGIM Real Estate)
According to the Australian Financial Review, Choi purchased 20 Bridge Street in 2017 for between A$330 million and A$350 million.
“Sydney presents attractive opportunities as assets have been repriced following rising interest and cap rates,” said Benett Theseira, PGIM Real Estate’s managing director and head of Asia Pacific, in a recent interview with EdgeProp Singapore.
The transaction marks the first joint venture (JV) between PGIM and Anton. It also signals a return to the office sector for both parties after several years on the sidelines as property values adjusted.
On Feb 19, PGIM Real Estate and Australian fund manager, KM Property Funds, announced their joint acquisition of a prime industrial and logistics estate in Yatala, Queensland. The purchase price is said to be about A$100 million.
This is the JV partners’ second industrial property acquisition, following their purchase of a logistics asset in Melbourne in May 2024 for about A$92 million.
Read also: Elevate Capital and PGIM Real Estate complete $132 mil acquisition of Stamford Court
On Feb 19, PGIM Real Estate and KM Property Funds jointly acquired an industrial and logistics estate in Queensland for about A$100 million (Photo: PGIM Real Estate)
PGIM Real Estate manages US$212 billion in assets globally, ranking it as the world’s third-largest real estate investment manager. It established a presence in the region 30 years ago and oversees US$9 billion in assets.
Singapore has been PGIM Real Estate’s Asia Pacific headquarters since 1994. Theseira has been the head of the APAC region since 2011.
In 2024, PGIM Real Estate completed over 20 acquisitions in APAC, totalling US$1.4 billion in debt and equity investments. Of these, 30% were in Australia, and 58% were in Japan. By sector, 46% of investments were in office properties, 25% in residential and living assets and 15% in industrial and logistics.
“We are fairly optimistic about 2025 as we see the market resetting and beginning to turn around,” says Theseira. “Our investor clients, who were hesitant over the past couple of years, are now showing renewed interest in investing.”
While acknowledging concerns about the possibility of persistent inflation and the likelihood of a more gradual-than-expected decline in interest rates under the new US administration, Theseira also highlights potential economic stimulants. “Increased business incentives could help drive economic growth,” he notes.
However, he points out that some US policies — such as higher tariffs — could create uncertainty for investors and the business community. Despite these challenges, he remains confident in the real estate sector’s long-term prospects. “We expect the real estate sector to perform well in the coming years,” he says.
Read also: Singapore Land sells 100% interest in Stamford Court for $132 mil
In 2022 and 2023, PGIM Real Estate expanded its investment portfolio in the living sector to include rental housing investments in Brisbane and Sydney, Australia, and Hong Kong (Weave Studios – Kowloon West pictured) and Shanghai, mainland China (Picture: PGIM Real Estate)
Theseira also sees a positive outlook for Singapore’s economy. On Feb 14, the Ministry of Trade and Industry announced that Singapore’s economy expanded by 4.4% in 2024, after a y-o-y growth of 5% in 4Q2024 and 5.7% in 3Q2024. The full-year growth rate of 4.4% was a significant acceleration from the 1.8% expansion recorded in 2023.
Singapore has emerged as a key regional business hub in APAC, benefiting from a well-managed government and strong incentives for sectors such as technology and private wealth, notes Theseira. “These factors have been strong catalysts for real estate demand, particularly in the office sector, where new buildings in the CBD continue to see high occupancy rates,” he adds.
Strengthening regional trade cooperation among the Association of Southeast Asian Nations (Asean), with initiatives aimed at enhancing transportation and logistics networks across member countries, will also benefit the city-state.
One such initiative is the Johor-Singapore Special Economic Zone (JS-SEZ), a collaboration designed to boost economic connectivity, cross-border trade, investment and labour mobility, according to an HSBC report on Feb 11. The zone is also expected to develop into a data centre hub with support from the Malaysian government.
“Singapore is land-constrained and population-constrained, yet it remains a highly attractive business centre,” says Theseira. “Johor, conversely, has ample land, a larger population and lower real estate costs. If [the JS-SEZ is] implemented effectively, there could be significant synergies between Johor and Singapore. It sounds promising, but, as always, the devil is in the details and execution.”
While Johor presents an attractive opportunity for data centre investments — leveraging its proximity to the republic — PGIM Real Estate remains cautious about the potential oversupply in the market and is closely monitoring the situation. “Our focus remains on major cities such as Tokyo, Osaka, Singapore, Seoul, Sydney and Melbourne,” says Theseira.
PGIM Real Estate and real estate investment firm Elevate Capital — founded by Ashish Manchharam — acquired Stamford Court for $132 million in August last year (Photo: Samuel Isaac Chua/EdgeProp Singapore)
In Singapore, PGIM Real Estate and real estate investment firm Elevate Capital — founded by Ashish Manchharam — acquired Stamford Court for $132 million in August last year. The deal was completed in October. The JV purchased the property from UIC Land, a wholly owned subsidiary of Singapore Land Group (SingLand), which is, in turn, fully owned by the listed property firm UOL Group.
Located at 61 Stamford Road, Stamford Court is a four-story commercial building with a net lettable area (NLA) of 62,900 sq ft. Built in 1994, the property features retail units on the ground floor and office space on the upper levels. It sits on a 99-year leasehold tenure starting from 1994.
The JV partners plan to revamp Stamford Court, reconfiguring its layout to incorporate serviced apartments and co-working spaces on the upper floors while introducing upscale retail on the ground level. “We like the mixed-use concept because different functions create synergies that complement and support each other,” says Theseira.
The living sector — including student housing, multifamily, co-living and senior living — is an area of growth for PGIM Real Estate, driven by structural demographic changes. “Housing affordability is becoming a challenge due to rising real estate prices,” says Theseira. “Many young executives prefer the flexibility of relocating rather than being tied down to a mortgage. Renting has become an increasingly attractive option.”
PGIM Real Estate has a significant multifamily portfolio in Japan. In 2022 and 2023, it expanded its investment portfolio in the living sector to include rental housing investments in Brisbane and Sydney, Australia, and Hong Kong and Shanghai, mainland China. These acquisitions were made on behalf of PGIM Real Estate’s value-add, core and core-plus strategies in the Asia-Pacific region.
Century Square and Tampines 1 (pictured above) were part of the Asia Retail Fund portfolio acquired by Frasers Property and Frasers Centrepoint Trust progressively, from April 2019, with the final stake of 63.1% was acquired in September 2020 for $1.06 billion (Photo: Samuel Isaac Chua/EdgeProp Singapore)
Five years ago, PGIM Real Estate divested Asia Retail Fund and its portfolio of malls to Singapore-listed Frasers Property and a REIT managed by the listed developer, Frasers Centrepoint Trust (FCT).
FCT increased its stake in Asia Retail Fund progressively, from an initial stake of 17.1% in April 2019, gradually increasing the stake to 36.9%. The final stake of 63.1% was acquired in September 2020 for $1.06 billion. Frasers Property also acquired AsiaMalls Management, the property manager of Asia Retail Fund, for an undisclosed sum.
Prior to the sale of the fund, PGIM owned the portfolio of malls for nearly two decades: Century Square and Tampines 1, near the Tampines MRT
Station; Hougang Mall, near the Hougang Central Bus Interchange and MRT Station; and Tiong Bahru Plaza and Central Plaza, which are linked directly to the Tiong Bahru MRT Station. It also owned White Sands, which is adjacent to the new Pasir Ris Mall, the Pasir Ris MRT Station and the bus interchange.
78 Shenton Way will have a direct link to the upcoming Prince Edward MRT Station on the Circle Line (Photo: Samuel Isaac Chua/EdgeProp Singapore)
PGIM Real Estate entered the Singapore office market, acquiring 78 Shenton Way in November 2018 for a reported $680 million from Keppel.
Tower 1 of 78 Shenton Way was built in 1988, while Tower 2 was completed in 2009. The property has a 99-year lease from 1983. Hence, the property has 57 years left on the lease. “PGIM Real Estate is not currently marketing the asset for sale, as our focus remains on leasing and management,” says Theseira. He highlights the asset’s intrinsic value, particularly its prime location, describing it as “the future gateway between the Greater Southern Waterfront and the rest of the CBD.”
The upcoming Prince Edward MRT Station on the Circle Line, set to open next year, will provide a direct link to 78 Shenton Way. “This will significantly enhance the building’s appeal to long-term tenants,” says Theseira.
Given these factors, PGIM Real Estate remains committed to maximising the asset’s value “through leasing to high-quality tenants and active asset management,” he adds.
According to listings by CBRE and JLL, monthly asking rents stand at $7.80 psf for Tower 1 and $8.60 psf for Tower 2 at 78 Shenton Way.
The 12-storey office building at 108 Robinson Road, where four strata-titled floors have been sold to date (Photo: CBRE, Savills Singapore and SRI Capital Markets)
In February 2021, PGIM Real Estate acquired another commercial building, the 12-storey 108 Robinson Road, for about $143 million. The property was purchased from Sin Capital Group, which completed an extensive revamp in June of the previous year.
The freehold building has a two-storey retail podium with offices from the third to 12th floors. Last September, whole strata floor units of about 4,700 to 4,800 sq ft at 108 Robinson Road were offered for sale.
It came on the back of the launch of Solitaire on Cecil, just one street away. The new building (redevelopment of the former PIL Building) offered freehold strata-titled whole office floors for sale. Prices hit a high of $4,325 psf for the entire 20th floor, which was sold for $48.6 million, based on a caveat lodged in April 2023. All the office units have been taken up, including the two retail units on the first level. One of the 936 sq ft retail units fetched $8,733 psf.
So far, four of the office floors at 108 Robinson Road have been taken up. Caveats lodged showed that a 4,747 sq ft, fifth-floor unit fetched $17.92 million ($3,775 psf) while the ninth-floor unit of 4,758 sq ft went for $18.56 million ($3,900 psf) in September. The 10th-floor unit, with a floor area of 4,736 sq ft, was sold for $18.44 million ($3,893 psf) in November. The seventh-floor unit was sold last November, although no caveat has been lodged.
With high stamp duties in the residential sector, Theseira believes that investors on the lookout for good investment will gravitate towards strata-titled office units, particularly those of freehold tenure.