M&G Real Estate has acquired six residential assets in Tokyo, Japan, for JPY19.4 billion ($155 million), expanding M&G’s residential portfolio to Japan’s “resilient” living sector that “provides income and long-term growth potential”, according to M&G Investments.
The deal adds more than 320 homes across a diversified mix of apartment sizes, “helping to meet demand from a broad range of renters in a market where quality rental housing remains scarce”.
The portfolio spans neighbourhoods with strong transport connectivity and access to employment hubs: Ryogoku, Hikifune, Meguro, Mita and Machiya.
Three newly completed assets are located in Ryogoku and Hikifune — in the eastern part of Tokyo — and offer 182 units ranging from one‑ to four‑bedroom apartments. Each property is within approximately “seven to eight minutes’ walk of the nearest train stations, providing convenient connectivity across the Tokyo metropolitan area”, according to M&G Investments.
Three other assets offering 138 residential units across a unit mix of studio and one-bedroom to larger multi-bedroom types are located in Meguro, Mita and Machiya — neighbourhoods with convenient access to the central business districts and transport nodes, says M&G Investments.
The limited new housing supply, rising construction costs and steady population growth have kept Greater Tokyo’s residential sector “standing out”, which makes the “sector an attractive source of resilient income and long-term value,” adds M&G Investments.
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Jing Dong Lai, CEO and CIO of M&G Real Estate Asia, says: “Japan continues to stand out as an attractive residential market, particularly in Tokyo, where demand for well-located rental homes remains strong. These acquisitions demonstrate our ability to source high-quality assets locally and invest with discipline in a market with long-term appeal. As we expand our footprint in Japan, we remain focused on building a resilient, diversified portfolio for our investors.”
With US$45.3 billion in assets under management, M&G Real Estate is part of M&G’s US$109 billion private markets business, which sits within M&G Investments’ broader US$463 billion in assets under management.
