M&G Real Estate’s Asia Property Fund has added the ¥100bn (€709m) Minato Mirai Center Building in Yokohama, Japan to its portfolio.

The manager said following the acquisition of the 95,220sqm office asset, the 21-storey building has become the largest asset in the M&G Asia Property Fund’s portfolio and is the latest in a series of deals in Japan, reaffirming M&G’s commitment to the region.

Jing Dong Lai, the CEO and CIO, M&G Real Estate Asia, said: “M&G Real Estate was one of the first movers amongst foreign firms in key gateway cities of Japan. Yokohama, home to the second largest working population in Japan, is attractive for many domestic enterprises, given its proximity to Tokyo and relatively lower rental costs.

“With limited future office supply in Minato Mirai and Yokohama set to benefit from above national average employment growth over the next few years, we are confident in Japan’s commercial real estate sector in the long term.”

Richard van den Berg, fund manager of M&G Asia Property Fund, said: “This latest acquisition is a continuation of our strategy to invest in Japan’s key gateway cities and our intention to develop assets in innovation clusters.

“With Tokyo-Yokohama now recognised as one of Japan’s most innovative global precincts, the Fund will be positioned to benefit from the continued return of workers into offices, providing our investors with geographical diversification and exposure to this rapidly growing asset class.”

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