Two of the world's leading property fund managers, PRUPIM and LaSalle Investment Management, have teamed up to form the Asia Property Fund, an open-ended pan-Asia Pacific fund for institutional investors and pension schemes that is a first for this region.
PRUPIM is the property investment arm of Prudential plc (United Kingdom) and operates in Asia-Pacific as a joint venture (called PRUPIM Singapore) with Prudential Corporation Asia. Prudential's UK life funds have seeded the Fund with its existing Asia Pacific direct property portfolio, which comprises five assets valued at over US $600 million located in Australia, Singapore, Hong Kong and Korea.
Additional committed equity from some of Prudential's Asian life funds and LaSalle Investment Management, and the ability to leverage, will provide buying power to grow the fund to over US$1 billion by year end. The Fund will invest in real estate throughout the region in multiple property types and structures.
Asia Property Fund further extends the relationship between the two property fund managers by creating a vehicle for international investors through a joint partnership. PRUPIM and LaSalle previously worked together in Asia to manage a segregated account for Prudential's UK life fund. LaSalle undertook acquisitions and acted as asset manager on behalf of PRUPIM.
The Investment Committee for the Fund is made up of key individuals from both PRUPIM and LaSalle who have worked together for more than six years. In terms of execution, PRUPIM Singapore will act as the fund manager and LaSalle as the investment manager.
Jonathan Allen, CEO of PRUPIM Singapore, said, "Asia Property Fund gives institutional investors and pension funds access to the core strengths of two property heavyweights. PRUPIM brings a long established and well resourced capability in managing core assets globally. With LaSalle's strong local presence and track record across the region Asia Property Fund will appeal to investors seeking a balanced and relatively liquid exposure to Asia Pacific property, with its attractive diversification and return characteristics. This Fund reflects our continuing commitment to growing our presence in Asia Pacific."
Celia Jennings, Head of Global Client Services, LaSalle Investment Management, said, "PRUPIM is a manager we have worked with and respected for a number of years. We are excited about the continued expansion of our relationship with PRUPIM Singapore on the Asia Property Fund where we are combining the strengths of both organisations to create a unique opportunity for institutional investors. The Fund's seed assets are a good reflection of the style of portfolio we will be creating as they offer sustainable income in locations across Asia Pacific and across property types."