M&G Real Estate has purchased a portfolio of 30 residential assets in Japan’s gateway cities of Tokyo, Osaka, and Nagoya for £322 million (€383.9 million/$424.2 million).
Made on behalf of the M&G Asia Property Fund, the deal substantially increases the fund’s exposure to one of Asia Pacific's key multifamily markets, taking assets under management in the sector to £716 million (€853.5 million/$943.3 million).
The 1,575 apartments are all within walking distance of public transport and are more than 90-percent occupied, reflecting the growing demand for well-located apartments in key cities. Such accommodation are highly sought after by young adults who continue to migrate from smaller cities into major metropolitan areas for education, job opportunities, and the convenience of amenities and infrastructure. While Japan's population is aging, cities such as Tokyo and Nagoya are projected to see population growth.
M&G Real Estate was an early
