Return to search

M&G acquires $113m Japan development site

The firm’s investment in Kanagawa, Japan was made using capital from its core Asia real estate investment strategy.

M&G Real Estate has acquired a site in Kanagawa, Japan, which will see the development of a four-storey logistics hub at a cost of $113.2 million.

The acquisition was made on behalf of M&G Real Estate’s core Asia real estate investment strategy.

“We will continue to capitalise on the investment and acquisition opportunities in the core real estate markets across Asia Pacific,” said Chiang Ling Ng, chief executive and chief investment officer of M&G Real Estate Asia.

“Additional exposure to Japan is in line with our current allocation requirements. These assets allow us to strengthen our portfolio performance and diversify risk notwithstanding continued investment appetite from domestic and foreign capital.”

Located in Atsugi City, the site has accessibility to major consumption and residential areas in central Tokyo, Kanagawa and Saitama. The area will also acts as a key connector between Nagoya, Osaka and Tokyo.

“The logistics space in Japan offers attractive yield opportunities, in light of increasing consumer traffic, space scarcity and a limited supply of such assets,” added Ng.

M&G Real Estate has about £2.5 billion of assets under management in the logistics sector and more than £200 million allocated to the speculative development pipeline. In Asia, the firm has also invested in logistics assets across Australia, Hong Kong and Singapore, representing 12.4 percent of its core Asia real estate portfolio.