M&G Real Estate adds 12 properties to Japan portfolio

Singapore

M&G Real Estate - the real estate fund management arm of M&G Investments - has acquired a residential portfolio of 12 properties in Japan, it announced in a news release on Wednesday. It did not state what the deal was worth.

This is its second residential portfolio acquisition in Japan this year, after it bought three properties in Kobe and Nagoya for a total of US$57 million in October. The latest portfolio - comprising residential properties that are almost fully occupied - are located in prime districts in Tokyo, Osaka, Kyoto and Fukuoka, M&G Real Estate said.

Richard van den Berg, who manages M&G Real Estate's core Asian property strategy, said the new portfolio is one of the largest that the company has acquired, and it increases its Japanese exposure to 22 per cent and residential exposure to 10 per cent.

"We continue to be positive about the fundamentals in targeted areas in Japan, where urbanisation trends remain strong," he said. "Coupled with high capital barriers for purchase and the high level of construction cost, we anticipate a moderate supply for new homes in the market, which will sustain the high demand for rental homes." Mr van den Berg added that M&G Real Estate would continue to improve its residential investment "to provide stable and core income" for its investors.