The firm is enhancing its exposure to Japan's residential market in key metropolitan cities, which it believes will provide a stable and core income for investors.
M&G Real Estate, the real estate fund management arm of M&G Investments, has made its second residential portfolio acquisition in Japan this year, the firm announced in a statement on Wednesday.
The portfolio of 12 properties, strategically located in prime districts around in Tokyo, Osaka, Kyoto and Fukuoka, follows the firm's acquisition of three properties worth $57 million in Kobe and Nagoya in October. This purchase brings the firm's Japanese exposure to 22 percent and its residential exposure to 10 percent.
Strong Urbanization Trends
Richard van den Berg, who manages M&G Real Estate's core Asian property strategy, said the firm is «positive about the fundamentals in targeted areas in Japan» as urbanization trends remain strong.
«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,» van den Berg said.
