UK’s Schroders Buys Majority Stake in Hong Kong Fund Manager Pamfleet

Real estate fund manager Pamfleet is about to become part of a £421.4 billion ($522.2 billion) global asset management giant after the Hong Kong-headquartered firm signed a deal this week to sell a majority stake of its business to London’s Schroders PLC.

Under the terms of the agreement, the value-add specialist will soon become known as Schroder Pamfleet, with Andrew Moore set to stay on as chief executive, running the UK firm’s real estate investment business in the region.

“We’re thrilled – very happy,” Moore told Mingtiandi in a call this evening, adding that, “The staff are very excited and very committed.”

The former Jardine Fleming executive described the sale as being partly about succession and partly about growth for the business that he started 20 years ago after leading a management buyout of Jardine’s real estate investment business in the city.

Same Team, Same Strategy

Noting that the 19-person Pamfleet team will now become part of the new Schroder Pamfleet entity, Moore said, “I’m committed, and committed to the growth,” adding that some existing Schroders’ staff in the region will be joining the newly enlarged operation.

“Pamfleet is a high-quality business with a clear investment thesis and an experienced team of investment professionals,” Duncan Owen, Global Head of Schroder Real Estate said in a statement. “Since it was founded in 2000, it has had an excellent performance track record in some of the highest value and most dynamic real estate markets in the world. These markets are attractive to many of our partners and clients.”

Owen went on to note that Pamfleet’s strength in executing value-add investments in Asia complements Schroders’ existing real estate and private asset strategies to provide new options for investors.

Schroders made clear that there will be no changes to the management of Pamfleet’s existing funds, while the newly expanded company will have access to the broader investment capabilities and distribution network of Schroders’ global business.

Following the acquisition, the Schroder Pamfleet board will comprise Moore and Singuz Lo, alongside Owen, Schroders chief operating officer for real estate Melinda Knatchbull and Amy Cho, chief executive officer of Schroders Hong Kong.

Pamfleet managing directors Allan Lee and Kelvin Wong will continue to lead teams based in Hong Kong, Shanghai and Singapore and will be joined by Canon Yau, who will lead the business’s institutional investor relationships.

Two Funding Rounds, One Acquisition

Just last year Pamfleet expanded its assets under management to $1.1 billion when it reached a $450 million final close on its third Hong Kong-Singapore value-add vehicle. In May of 2019 the company wrapped up $100 million in funding for its second real estate investment fund focused on mainland China.

While it is best-known for sprucing up aging office towers in Hong Kong, the company has also managed residential and retail investments in Hong Kong, Singapore and Shanghai.

“We will continue to focus our attention on our existing funds and existing assets,” Moore said, adding that the company will develop new growth strategies in the future.

Asset Managers Going Global

Schroders’ investment in Pamfleet comes just over a year after its UK rival, Aberdeen Standard Investments, acquired its own on-the-ground real estate fund management presence in Asia by purchasing Hong Kong-based Orion Partners for an undisclosed amount.

Just last year Schroders expanded its presence on the European continent by purchasing Germany’s Blue Asset Management, which also specialises in value-add strategies, as well as acquiring pan-European value-add hotel investment specialist Algonquin.