Prudential arm M&G Real Estate acquires industrial property portfolio in Australia

Waterfront view of Sydney, Australia

Prudential Inc’s realty investment arm M&G Real Estate has acquired a 50 per cent share in a portfolio of industrial properties across Sydney and Brisbane, in a bid to diversify the firm’s exposure in Australia, it said in a statement on Friday.

No financial details of the deal were disclosed.

The deal is a partnership with Australian real estate group Dexus and was made on behalf of its core Asian property strategy. Once the deal is completed, M&G Real Estate will become a 50 per cent partner in the joint venture.

“We are pleased for this opportunity to increase our Australian real estate portfolio. Demand for prime logistic assets closer to cities are increasing as retailers are increasing their omni-channel presence. These properties are well positioned to add significant value to our strategies,” said M&G Real Estate’s core Asia Property strategy manager, Richard van den Berg.

The latest investment is the firm’s third acquisition in Australia this year following 40 Mount Street in Sydney and 80 Ann Street in Brisbane, bringing its total exposure in Australian real estate to A$2.37 billion ($1.7 billion).

The portfolio comprises an estate at Quarrywest in Greystanes, Sydney as well as two Brisbane properties situated in prime industrial locations that benefit from proximity to infrastructure and established employment bases. The properties were recently built with high quality specifications, good clearance, super canopies and strong environmental credentials. They are also fully occupied with a strong tenant base with long-term commitments.

Prime logistics in Australia is poised for growth backed by positive structural drivers and an evolving e-commerce market alongside ongoing infrastructure improvements are expected to drive rental growth, added M&G Real Estate.

“We are delighted to work with Dexus, who has a proven track record and expertise in Australia’s logistics sector. We look forward to developing this strategic partnership and working with them to increase our exposure in Australia,” said M&G Real Estate Asia CEO and CIO, Chiang Ling Ng.

In October, the firm has snapped up its third Japanese residential portfolio for $83.7 million, adding on its exposure to the Japanese residential market.

M&G Real Estate is the real estate fund management arm of M&G Investments which, in turn, is the investment arm of Prudential Plc through M&G Prudential which is set to demerge from Prudential Plc to become an independent company listed on the London Stock Exchange.

It has offices in Singapore, Seoul, and Tokyo dedicated to real estate in the Asia Pacific region. As at June 30, 2018, the Singapore office is responsible for $5.4 billion in assets.

Also read:

Prudential arm M&G Real Estate adds third Japanese housing asset for $84m

UK insurer Prudential to spin off M&G unit as it focuses on Asia growth

M&G Real Estate says an Asia value-add strategy possible in future

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In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

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  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
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