The real estate division of PGIM, the $1.3tn US-headquartered asset manager, has launched an innovation lab, partnering with University College London and other global institutions to develop new technologies.
The lab, RealAssetX, will tap more than 50 years of data from PGIM Real Estate — as well as from third parties — to develop new technologies that can be rolled out across the sector.
PGIM Real Estate, which oversees $210bn, is one of the largest real estate managers in the world. It will also partner with UCL to launch the Centre for Sustainability and RealTech Innovation, which will focus on research projects in sustainability, artificial intelligence and other advances in real assets.
In the US, PGIM Real Estate will join up with the University of Chicago Data Science Institute to focus on big data analysis and AI to improve investment decisions and portfolio construction.
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Meanwhile, a partnership with the National University of Singapore will explore research data and AI for predictive analytics, and a tie-up with the University of New South Wales will focus on sustainability and so-called “deep tech” — start-up companies that focus on high-tech innovation.
According to PGIM Real Estate, current technologies available will only allow the real assets sector to reach around 60% of its net zero goal by 2050. The remainder will be achieved using technology that doesn’t exist today.
The lab’s work with the University of New South Wales will allow it to invest in new materials like ‘cool coating’ for building exteriors to potentially reduce their temperature by 4 to 5°C, cutting the need for heating and cooling and limiting greenhouse gas emissions.
RealAssetX will partner with real asset technology manager Taronga Ventures to enable third-party capital to invest in early- and later-stage technology companies.
The formation of the research lab comes as asset managers explore new forms of technology, including AI, and their potential use cases across the sector.
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According to a July EY survey of European financial services CEOs, 94% are integrating AI into their capital allocation, with 51% currently investing in the technology.
In the UK, Schroders and Abrdn are among the asset managers to have trialled AI tools with staff.
Meanwhile, the CEO of Amundi Technology, which is seen as a rival to BlackRock’s Aladdin Platform, told Financial News last month that the business expected fees to grow as rivals seek help with their approach to AI.
Raimondo Amabile, co-chief executive officer and global chief investment officer at PGIM Real Estate, said real estate managers’ success “will be defined by their ability to be tech-enhanced through every stage of the investment lifecycle”.
“By partnering with leading universities and technology companies, RealAssetX is building an ecosystem to develop new technologies that don’t exist today.”
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To contact the author of this story with feedback or news, email David Ricketts
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