The fund is India’s first Global Real Estate Securities Fund. The NFO will open for subscription on November 15, 2021 and will close on November 29, 2021.
The benchmark index of the fund is FTSE EPRA NAREIT Developed Index. The primary investment objective of the scheme is to generate long-term capital appreciation from investing in the units of PGIM Global Select Real Estate Securities Fund, which primarily invests in REITs and equity-related securities of real estate companies located throughout the world.
Globally, real estate as an asset class and as an investment has undergone a shift during the pandemic. As economies across the world reopen, properties such as hotels, assisted living facilities and restaurants will benefit from pent-up demand.
The pandemic has accelerated trends already underway such as cloud computing, remote schooling, remote working, e-commerce, last-mile retail, etc., thus expanding growth opportunities for real estate.
“Today’s investment opportunities span a wide range of categories, including capitalising on favourable occupier momentum linked to accelerated changes in how real estate is used, investing in assets that require some short-term repositioning and finding value in parts of the market that have undergone a long-term correction,” said Rick Romano, MD, PGIM Real Estate and Head of Global Real Estate Securities Business.
“As concerns around new variants of COVID ease, allowing workplaces and service-oriented industries to reopen more fully, occupier sentiment is expected to return quickly supporting a rebound in real estate space demand,” said Romano.
“It is our endeavor to bring relevant and timely investment ideas to Indian investors and advisors. We are therefore proud to present our parent PGIM’s global expertise in this asset class. Its various sub-themes like grade A commercial, self-storage, logistics, last-mile retail, senior living, cold storage, etc. are either not available in India or not available at scale as investible securities compared to global markets,” said Ajit Menon, CEO, PGIM India Mutual Fund.
“With interest rates and inflation where they are today, this strategy will be an important addition to build resilience in client portfolios for times ahead,” said Menon.
