Schroders Names Former OTPP Exec Ando APAC Head as Moore Moves to Chairman Role

Schroders Capital has named a new head for its Asia Pacific real estate business as the UK investment manager signals a reboot after defaulting on loans tied to Hong Kong assets acquired under its most recent fund.

In a statement on Thursday Schroders announced Junnosuke (Jun) Ando, formerly a managing director with the Ontario Teachers’ Pension Plan, as head of real estate for Asia Pacific with effect from 29 September. While Schroders had built its Asia real estate business through the 2020 acquisition of Hong Kong-based Pamfleet, Ando will be based in Singapore.

In the same announcement, the company said Andrew Moore, who founded Pamfleet and has served as Schroders’ head of APAC real estate since the takeover, will move into a chairman role. “It is my pleasure to support Jun and the team in taking the business to the next level in my new role,” Moore said in the statement. “Schroders Capital remains committed to managing our existing real estate assets and building a firm foundation for growth, as evidenced by Jun’s appointment.”

Schroders’ change in leadership was announced as receivers sold The Nate, a property on Hong Kong’s Nathan Road which had been seized after a fund managed by the firm defaulted on loans. Earlier this month UOB was reported to be mulling the seizure of a Hong Kong shopping mall held by a Schroders JV with UK investor Chelsfield, as loans on that property also turned sour.

Two Decades in the Industry

“I’m delighted to join Schroders Capital and lead the APAC Real Estate team,” Ando said. “There is enormous potential to leverage our combined years of investment experience in the region, bringing entrepreneurial culture and expertise in opportunistic investment for further growth – both in markets where we already have coverage as well as other new markets and strategies.”

Ando has been based in Singapore with Ontario Teachers’ Pension Plan (OTPP) since 2022, first as a managing director with its real estate division Cadillac Fairview before transitioning to the parent organisation when the two entities were merged more than a year ago.

A graduate of the the University of Virginia, Ando started his career with real estate information provider CoStar Group two decades ago before spending more than 15 years with Goldman Sachs in Tokyo, Singapore and Sydney.

“The appointment of Jun aligns perfectly with our strategy of combining outstanding investment expertise with entrepreneurial, specialist local teams,” said James MacNamara, global head of value-add and alternatives with Schroders Capital. “This approach enables us to navigate complex and fast-moving investment environments with agility, ensuring our clients have access to the most compelling risk-adjusted opportunities.”

Nate for Naught

Change may be welcome at Schroders’ real estate business in the region, as the company’s Hong Kong-centric portfolio has taken a beating in that city’s commercial property downturn.

The Nate, a serviced apartment building with a retail podium in Tsim Sha Tsui, sold for HK$272 million ($35 million), according to market sources who spoke with Mingtiandi. That sale represented a more than 66 percent markdown from what Pamfleet and its partner in the project had paid to acquire and later renovate the building at 176 Nathan Road.

Schroders, which took over management of Pamfleet’s funds in the 2020 buyout, is said to have owed banks HK$330 million on the property, and had last year attempted to find a buyer at HK$400 million.  

“We opine the transacted price at HK$272 million as close to today’s market level,” Bobby Mak, real estate valuer at Hong Kong-based CHFT Advisory and Appraisal, told Mingtiandi.

The buyer of the Nate has yet to be disclosed with news of the cut–rate sale having been earlier reported by local media outlet HK01. A Schroders spokesperson in Hong Kong said the firm was not in a position to comment after a receiver had been appointed for the asset.

Disposal Efforts

The UK investment manager is also said to be locked in discussions with Singapore’s UOB after defaulting on a HK$1.5 billion ($190 million) loan from the bank on the Worfu shopping mall in Hong Kong’s North Point area, as reported earlier this month by Mingtiandi.

Together with Chelsfield, Pamfleet had purchased what was then the Provident Square mall for HK$2 billion in 2017 before investing to reposition and upgrade the neighbourhood shopping centre.

In January, Schroders appointed CBRE to market the 210,000 square foot (19,510 square metre) mall at an asking price of HK$1.6 billion, with that effort failing to find a buyer. 

Also during the first month of the year Schroders engaged JLL to find a buyer for a floor in a commercial podium in Kowloon’s Harbourfront Landmark at a guide price of HK$150 million. That marketing effort, which also fell short of a sale, came after Schroders had cancelled an attempt at a public auction of the entire podium last year.