M&G Real Estate Asia has bought a high-rise multi-family property located in Nishi-Shinjuku, Tokyo for approximately JPY30bn (€188m), on behalf of its targeted strategy, which invests in value-add opportunities.

The 24-storey Frontier Shinjuku Tower, constructed by residential developer Sekisui House, has 298 residential units and commercial components of mixed retail and office units on the lower floors.

M&G plans to invest additional capital to further position Frontier Shinjuku Tower as a high-end multi-family property, and to restructure the commercial components to generate stable income.

Martin Seol, head of targeted strategy at M&G Real Estate Asia said: ‘’We are keenly focused on sectors such as residential – including student housing and co-living – along with logistics and hospitality across the Asia Pacific, the United Kingdom and Europe.”

He said that the aim was to enhance the intrinsic value of investments by leveraging the firms’ “expert asset management capabilities”.

Seiko Ikeda, head of Japan Real Estate at M&G said: “The multi-family residential sector, in particular, is pivotal to our strategic positioning and success in the Japanese market. The addition of the Frontier Shinjuku Tower to our portfolio is a testament to our commitment to capitalising on high-potential assets and building our presence in this key market.”

M&G’s acquisition of the Frontier Shinjuku Tower is part of a strategic series of investments in Japan, including a significant stake increase in the ESR Ichikawa Distribution Centre in the Greater Tokyo Bay Area last year. Other investments include 30 multi-family residential properties from Blackstone for JPY49.2bn in 2022, and the Minato Mirai Center Building in Yokohama in 2022, M&G’s largest real estate acquisition in Asia for some JPY100bn.

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