Schroders buys control of Hong Kong’s property manager Pamfleet, in a vote of confidence amid city’s frayed nerves

Schroders, the 216-year old UK-based multinational asset manager, has bought control of a Hong Kong real estate investment manager, in a vote of confidence of the city’s role as a regional hub for financial and professional management services, even as it finds itself caught in the escalating rivalry between the US and China.

Schroders has taken over Pamfleet, with 19 properties in Hong Kong, Singapore and China valued at US$1.1 billion under management, according to a press statement that did not divulge the takeover price. After the purchase, the Hong Kong property manager’s entire team of 19 professionals will remain with the company, which will be renamed Schroder Pamfleet.

The acquisition, which bolsters Schroders’ US$20.2 billion in real estate holdings, may go some way towards calming frayed nerves, after the US Congress threatened to strip Hong Kong of its autonomous customs status from mainland China, in retaliation for the Chinese legislature’s passing of a national security law for the city.

“Business is business,” said CGS-CIMB Securities’ head of Hong Kong and China research Raymond Cheng. “From the point of investment, Hong Kong still an important city in Asia. The transaction can be seen as a vote of confidence in Hong Kong’s future. To a certain extent, the national security law is effective in restoring the city’s stability. We have seen most property stocks surge today.”

“This absolutely shows that international investors are still very confident about the long-term prospects of Hong Kong’s property market,” said Antonio Wu, deputy managing director of Capital Markets at Colliers International. “Pamfleet has a very talented team in both acquisition and asset management, so they can make all the right critical decisions and execute their plans for value-added propositions.