PGIM Real Estate is riding on the waves of some of the mega trends to stay resilient, focusing on core industrial opportunities.
When there is a global downturn, there are always opportunities that are created.
Frank Ng, Executive Director of Transactions Southeast Asia at PGIM Real Estate, shares with Colliers REview how his organisation is pivoting to stay resilient amid current challenges brought about by the coronavirus (COVID-19) pandemic.
As an investor, what are the next key focus areas for PGIM in Singapore? How will you focus your efforts based on sector resilience?
We are very fortunate at PGIM, as we had raised substantial amounts of capital across all mandates to be deployed in Asia, just prior to the crisis.
We look to be very active this year; we've had some great traction with some solid funds and our core product, Asia Core. We also recently purchased a logistics deal in Singapore, with completion taking place remotely during the circuit breaker period.
Despite my view that the market will be resilient and bounce back eventually, I believe we will emerge with a lot more debt than previous years. The central banks have been so generous, extending liquidity in the market at very low cost. There will still be opportunities, particularly in manufacturing and in the industrial space, as companies go light and pay down debt, looking for over-leveraged asset owners who could be pressured to sell. This makes it more of a realistic expectation, taking into account the lower growth group environment.
We will be very active in the Singapore market, focusing on core industrial opportunities and riding some of the mega trends. There will also be more opportunistic assets with the office and retail sectors.
Related content: Watch a recap of Colliers' webinar: 'Sink or Swim - A sector-specific focus'
What do you know now that you wish you knew before COVID-19?
I wish I knew how difficult homeschooling was!
Aside from that, I wish I knew the best and most effective way to complete deals without meeting face-to-face.
Transactions are very people-sensitive and time-sensitive, with hard-copy documentation and processes involved. I wish we could all, collectively - buyers and sellers - agree to digitise the process, as this has really been the challenge.
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Frank Ng, Executive Director of Transactions SEA, PGIM Real Estate Editor’s note: During the circuit breaker period, Frank has been wearing many hats - from juggling the battles of home-schooling, to spearheading remote transactions for PGIM across Southeast Asia, all while ensuring he is keeping up with the latest post-apocalyptic zombie movies being released. |
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