The firm is making enhancements to its core Asia property strategy with three assets in Japan.
M&G Real Estate, the real estate fund management arm of U.K.-based M&G Investments, has acquired a partial interest in a prime logistics facility in Chiba, Greater Tokyo Bay Area and two residential buildings in Osaka, Japan on behalf of M&G Asia Property Fund (MAP), the firm announced on Tuesday.
They include the ESR Ichikawa Distribution Centre, built in 2019 in Ichikawa City, Chiba, comprising two four-storey blocks with a total floor space of 201,100 m2 and a large floor plate of 25,100 m2. It is currently fully leased and is expected to generate strong and stable rental income.
The residential portfolio, located near Namba with access to amenities and transportation, comprises 280 apartment units across two new buildings, which were completed in January 2021. Occupancy rates have been above 90 percent since completion.
Resilient Market
MAP’s 25 percent interest in the prime logistics facility is priced at $216.6 million, while its 100 percent interest in the two residential buildings is priced at $50 million.
«Japan’s logistics and residential market, particularly in key metropolitan cities remain robust and resilient with the growth of e-commerce and continued demand for high quality apartment accommodation,» Richard van den Berg, fund manager of M&G Asia Property Fund said.
M&G said that over the longer term, positive wage and job growth within Osaka is expected to support continued demand for the urban residential rental market.
