PGIM Real Estate is making considerable strides toward its $1.25 billion fundraising goal for its fifth flagship Asia-Pacific value-add fund, Asia Value-Add Fund V. As of March 2025, the firm has raised approximately 60% of the target amount, sources close to the matter have confirmed. The capital has been drawn from a diverse set of investors across multiple regions, with a notable share coming from Asian investors.
Launched in December 2023, Fund V’s investment strategy primarily focuses on opportunities in Australia and Japan, with selective investments in South Korea and Singapore. PGIM has already begun deploying capital, with notable investments spanning logistics, senior housing, and office properties. A key acquisition occurred in February 2025 when PGIM acquired the office asset at 20 Bridge Street, Sydney, for A$250 million ($158 million; €146 million).
If Fund V reaches its $1.25 billion target, it would become the largest vehicle in PGIM’s Asia-Pacific value-add series. In comparison, the previous fund, Asia Pacific Value-Add Fund IV, closed in January 2021 with €970 million in commitments. Initially, Fund IV had a target of €650 million, but strong demand led the firm to raise the hard cap to €750 million.
PGIM’s value-add strategy has been particularly active in Asia’s rental housing sector. In Australia, the firm formed a joint venture with local developer Point Capital in 2023, purchasing two properties as part of an initiative to expand its rental residential portfolio. Similarly, in Hong Kong, PGIM has partnered with co-living specialists Weave Living and Dash Living to develop rental and co-living apartment projects.
Alongside Fund V, PGIM is also raising capital for its PGIM Australia Real Estate Debt Fund. The fund has already secured A$650 million in commitments and is on track to reach its target of A$750 million by its final close in 2025. This follows an initial close of A$300 million in July 2024.
Steve Bulloch, head of Australia and Asia-Pacific real estate debt at PGIM Real Estate, highlighted the strong interest from both Asian and European pension funds, along with global institutional investors. PGIM plans to deploy $1 billion into Australian real estate debt over the next two years, taking advantage of attractive investment opportunities in the country.
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