Global real estate investor M&G Real Estate has added 12 more residential properties to its Japan portfolio. This acquisition is the second time this year the investor has added to its residential Japanese property portfolio this year, following the acquisition of three properties in Kobe and Nagoya in October.
The 12 new properties are located in prime districts in Tokyo, Osaka, Kyoto, and Fukuoka. They comprises residential properties with convenient access to public transportation, employment, and local amenities. The properties are also almost fully occupied.
Richard van den Berg, the manager of M&G’s Asian property strategy, says: “This acquisition demonstrates our ability to execute meaningful and competitive transactions in Japan. This is one of the largest portfolios of residential properties that we’ve acquired and an opportunity for M&G to increase our Japanese exposure to 22% and residential exposure to 10%.”
He also expects high capital barriers for purchase and high construction cost to moderate the supply for new homes in the Japanese property market, and thus sustain the high demand for rental homes.
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