PGIM Real Estate is tying up with Hong Kong-listed property investor ESR Cayman to invest in a redevelopment project for POKKA.
ESR Cayman is tying up with PGIM Real Estate‘s Asia core strategy to invest $100 million for a build-to-suit (BTS) redevelopment project for POKKA, the companies said in a press release Friday. The project is for POKKA Logistics Singapore, a wholly owned subsidiary of POKKA SAPPORO Food & Beverage, a maker of ready-to-drink beverages under the POKKA brand, the release said.
Under the deal, ESR and PGIM Real Estate’s Asia core strategy will acquire leasehold rights to POKKA’s existing one-storey warehouse at 4 Benoi Crescent in Singapore, and then develop it into a five-storey facility to be completed in the first quarter of 2024, the release said. POKKA has committed to a 10-year lease of at least 70 percent of the building space, with an option for extensions, the release said.
Recovery Play
Benett Theseira, PGIM Real Estate’s head of Asia Pacific, pointed to Singapore’s recovering economy as driving a positive outlook for the city-state’s logistics sector.
«We expect this positive momentum and the ongoing supply chain diversification to drive demand for high quality warehouse space. This is a rare opportunity for PGIM Real Estate to acquire a stake in a prime asset anchored by a high-quality tenant,» Theseira said in the statement. «Our partner, ESR brings an extensive track record in managing logistics developments and properties and, through our collaboration, we are excited that this acquisition and redevelopment project will further extend our regional footprint within the logistics sector.»
PGIM Real Estate, which had $201.3 billion in gross assets under management and administration as of end-September 2021, is the real estate investment and financing business of PGIM, which is Prudential Financial’s $1.5 trillion investment management business, the release said.
This item originally appeared on «Shenton Wire.»
