M&G Real Estate, the real estate fund management arm of M&G Investments, has purchased a retail property asset and a mixed portfolio of residential real estate in Japan for 13.1bn yen (€115m).

The acquisition is part of M&G’s core Asia property strategy.

Ng Chiang Ling, chief executive and CIO at M&G Real Estate Asia, said the acquisition allowed the fund to strengthen its portfolio performance and diversify risk.

“With a healthy capital queue, we are well positioned to pursue property investments across the region to further improve our risk-adjusted returns and sustain the outperformance of our portfolio,” Ng said.

She said Japan was a “key market” for M&G Real Estate.

“The low-interest-rate environment also continues to support investor demand for property in developed Asia Pacific markets,” she said.

The retail asset in Fukuoka, fully let, is next to the Nakasu Kawabata station and a 10-minute walk from Tenjin station, which services a popular entertainment precinct in the city.

The residential portfolio, which comprises 490 individual homes, is spread across Chiba, Tokyo and Osaka.