M&G Plc's real estate arm has acquired a prime office building in Yokohama for more than US$700 million, as the firm continues to build its portfolio in Japan.
M&G Real Estate bought the 21-storey Minato Mirai Center Building on behalf of its M&G Asia Property Fund, the company said in a statement on Tuesday (Oct 4). The property, located in Yokohama's business district of Minato Mirai, is now the largest asset in the fund.
"Yokohama, home to the second-largest working population in Japan, is attractive for many domestic enterprises, given its proximity to Tokyo and relatively lower rental costs," said Lai Jing Dong, chief executive officer at M&G Real Estate Asia.
M&G is among investors betting that more Japanese workers will flock back to offices as the pandemic wanes. In Tokyo, north of Yokohama, office investment value increased by 20.5 per cent in the second quarter from a year ago to 211 billion yen (S$2.1 billion), according to Jones Lang LaSalle.
M&G was spun out of UK insurer Prudential in 2019. Its real estate business had £33.5 billion (S$54 billion) under management as at the end of June. BLOOMBERG