Prudential arm M&G Real Estate adds third Japanese housing asset for $84m

M&G Real Estate Asia CEO Ng Chiang Ling

Prudential Inc’s realty investment arm M&G Real Estate has acquired its third Japanese residential portfolio for $83.7 million (JPY 9.313 billion), in a bid to increase its exposure to the country’s residential market.

The asset includes four properties located across Chiba, Fukuoka, and Osaka with the acquisitions made on behalf of M&G’s core Asia property strategy, M&G Real Estate said in an announcement on Thursday.

The portfolio comprises 561 individual homes in four different assets across Osaka, Chiba, and Fukuoka and are almost fully occupied. The assets are relatively new and are strategically located in established residential neighborhoods.

“This acquisition is in line with our strategy to increase exposure to Japan’s residential market focusing on properties in major and growing cities and provide stable and core income to investors,” said CEO and CIO of M&G Real Estate, Asia Chiang Ling Ng.

Japan’s residential market, particularly multifamily residential assets in Greater Tokyo and key regional cities such as Osaka, Chiba, and Fukuoka are providing attractive income opportunities as they are expected to continue and support ongoing demand for rental housing, Ng added.

The real estate investor with over £30 billion (including cash) globally is seeking further opportunities to balance its portfolio to leverage and grow the existing residential investment and asset management capabilities in Japan.

Having been in Asia since 2006, M&G Real Estate manages assets largely via the core real estate fund called M&G Asia Property Fund which it claims is the largest open-ended core fund in the region. Investments from the core Asia strategy include a site in Kanagawa, Japan, that will see the development of a four-storey logistics hub at a cost of $113.2 million.

It also acquired a Grade A office building in Australia for $90.9 million, a logistics asset in South Korea for $136 million and Higashi Ogijima Logistics Centre in Japan for $75 million.

M&G Real Estate is the real estate fund management arm of M&G Investments which, in turn, is the investment arm of Prudential Plc through M&G Prudential which is set to demerge from Prudential Plc to become an independent company listed on the London Stock Exchange.

Also Read:

M&G Real Estate says an Asia value-add strategy possible in future

US pension giant TIAA plans $1b investment in Japan real estate

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.