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.