​PGIM Real Estate expands investments in Japan with two office buildings

PGIM Real Estate has expanded its investments in Japan with the acquisition of two office buildings.

PGIM Real Estate, which didn’t disclose any financial details, said it bought J Tower in Tokyo and the Toyobo Building in Osaka, on behalf of institutional investors.

J Tower in Tokyo, is an 18-story office building with a three-story office annex. The property has about 34,000sqm of lettable space.

The 13-story Toyobo Building is in central Osaka. It has around 36,000sqm of office space.

Benett Theseira, head of Asia Pacific for PGIM Real Estate, said: “Low vacancy rates, strong tenant demand and limited office supply in Tokyo and Osaka, against a favourable economic backdrop for Japan overall, provide a compelling rental growth and stable income opportunity for our investors.”

Theseira said the successful execution of these off-market investments showcases the company’s ability to find value in competitive markets.

“Both assets offer a unique value proposition to our investors, along with stable, long-term income,” Theseira said.

PGIM Real Estate latest transactions follow three other acquisitions in Japan over the past 14 months. The company previously acquired B-Town, Jingumae 6 and the Italian Cultural Institute Building.

PGIM Real Estate is the real estate investment business of PGIM, the global investment management businesses of Prudential Financial.