M&G Real Estate acquires Japanese residential buildings for US$83.7 million

M&G Real Estate, the property fund management arm of London-based M&G Investments, has acquired a portfolio of Japanese residential buildings for US$83.7 million, its fifth in Japan since the launch of its core Asia property strategy in 2006. The portfolio comprises four multi-family residential buildings located in Chiba, Fukuoka, and Osaka, the company says in a statement on October 29. This is its first Japanese property deal of 2018. The assets are "relatively new and are strategically located in established residential neighbourhoods with convenient access to employment, amenities and transportation to attract young professionals looking for accessibility to larger cities", the company says. According to Chiang Ling Ng, chief executive officer and chief investment officer for Asia at M&G Real Estate, the acquisition is in line with the company’s strategy to raise exposure to Japan's residential market, focusing on properties in major and growing cities. "Japan’s residential market, particularly multi-family residential assets in Greater Tokyo and key regional cities such as Osaka, Chiba, and Fukuoka are providing attractive income opportunities as the key cities of Japan are expected to continue and support ongoing demand for rental housing,” Ms. Ng says in the statement. "We will continue to seek further opportunities to balance our portfolio to leverage and grow our existing residential investment and asset management capabilities in Japan,” she adds. The company’s other property purchases in Japan include the Higashi Ogijima Logistics Centre at Kawasaki Port in Kanagawa and a portfolio of six residential buildings across Greater Tokyo and Osaka, both acquired last year.