The real estate division of US-based $1.3 trillion asset management firm PGIM has launched an innovation lab to develop new technologies in partnership with University College London and other global institutions.
The lab, called RealAssetX, leverages more than 50 years of data from PGIM Real Estate and third parties to develop new technologies that can be deployed across sectors.
PGIM Real Estate is one of the world’s largest real estate management companies with $210 billion under management. It will also partner with UCL to launch the Sustainability Realtech Innovation Center, which will focus on research projects in sustainability, artificial intelligence and other advances in real assets.
In the US, PGIM Real Estate has partnered with the University of Chicago Data Science Institute to focus on big data analytics and AI to improve investment decision-making 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, while a partnership with the University of New South Wales will focus on sustainability and so-called “deep tech”, or high-tech innovation. guess.
According to PGIM Real Estate, with currently available technology, the real estate sector will only reach around 60% of its net zero target by 2050. The rest will be accomplished using technology that does not currently exist.
The institute’s collaboration with the University of New South Wales will enable investment in new materials such as “cool coatings” for building exteriors, which have the potential to reduce building temperatures by 4-5 degrees Celsius, reducing heating and cooling needs. will be reduced and greenhouse gas emissions will be limited. .
RealAssetX has partnered with real asset technology manager Taronga Ventures to enable third-party capital to invest in early- and late-stage technology companies.
The establishment of the institute comes as asset managers explore new forms of technology, including AI, and potential use cases across the sector.
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According to a July EY survey of European financial services CEOs, 94% have incorporated AI into their capital allocation, and 51% are currently investing in the technology.
In the UK, Schroders and Abdon are among the asset managers that have trialled AI tools with their staff.
Meanwhile, the CEO of Amundi Technology, which is seen as a rival to BlackRock’s Aladdin platform, told Financial News last month that fees are increasing as rivals seek help with their approach to AI. He said he expected the number to increase.
Raimondo Amabile, co-chief executive officer and global chief investment officer of PGIM Real Estate, said the success of real estate managers “is determined by their technology-enhanced capabilities throughout 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 article with feedback or news, email David Ricketts.
