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M&G in $124m Japan assets buy

The real estate investment manager has acquired a retail asset and a portfolio of residential properties in Japan.

M&G Real Estate has completed the acquisition of two properties in Japan worth a combined $123.6 million.

The real estate investment management arm of the London-headquartered insurance company Prudential has purchased a retail asset in Fukuoka and a portfolio of residential assets via its M&G Asia Property Fund, the firm’s open-ended real estate fund in the region.

“These assets allow us to strengthen our portfolio performance and diversify risk, notwithstanding continued investment appetite from domestic and foreign capital,” said Chiang Ling Ng, chief executive and chief investment officer of M&G Real Estate Asia. “With a healthy capital queue we are well positioned to purse property investments across the region to further improve our risk adjusted returns and sustain the outperformance of our portfolio.”

The Fukuoka retail asset is a fully leased recreation complex. The residential portfolio comprises 490 individual homes in ten different assets across Chiba, Tokyo and Osaka.
Japan is among the key investment markets for the M&G Asia Property Fund. In late 2014, the firm acquired an office property and a residential property portfolio for $150 million in total. This deal was preceded by the purchase of F Parc Tenjin, an office building in Fukouka.

M&G Real Estate has offices in Singapore, Seoul and Tokyo for pursuing real estate investments in Asia. According to a company statement the Singapore office is responsible for $3.8 billion in assets, as of end June.