M&G Real Estate Fund Manager Richard van den Berg says its recent acquisition of twelve properties across metropolitan cities in Japan enhances its exposure and may deliver stable and core income to investors.
M&G Real Estate, acquires a residential portfolio of twelve properties in Japan as part of its core Asian property strategy managed by Richard van den Berg for institutional investors.
According to M&G Real Estate Fund Manager Richard van den Berg, this acquisition marks its second residential portfolio acquisition in Japan this year following the acquisition of three properties in Kobe and Nagoya in October.
Van den Berg claims the properties are strategically located in prime districts around in Tokyo, Osaka, Kyoto and Fukuoka. Comprising quality residential properties with convenient access to public transportation, employment and local amenities, the portfolio is almost fully occupied.
“Once again, 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%. We continue to be positive about the fundamentals in targeted areas in Japan, where urbanisation 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. Combined with our excellent asset management capabilities, we will continue to improve our residential investment to provide stable and core income for our investors,” says Van den Berg.
(Ed. M&G Real Estate is the real estate fund management arm of M&G Investments. M&G Investments is part of M&G Plc, a savings and investment business which was formed in 2017 through the merger of Prudential plc’s UK and Europe savings and insurance operation and M&G, its wholly owned international investment manager. M&G Plc listed as an independent company on the London Stock Exchange in October 2019 and claims it has £341 billion of assets under management (as at 30 June 2019).