PGIM Real Estate has acquired a US$120m (€96.3m) multifamily portfolio in Japan for its core Asia real estate strategy.

The six newly completed mid-market residential buildings offering a total of 353 units. Five are located in Tokyo and one in Yokohama, south of the capital city.

Benett Theseira, PGIM Real Estate’s head of Asia-Pacific, said the portfolio presented an attractive investment opportunity due to its combination of strong property locations and stable in-place cash flows.

“Demographic drivers, including population growth in Tokyo and Yokohama and the migration of young working adults to the major cities, are fueling demand for mid-market residential units for rent,” he said. “This will support long-term growth across the portfolio.”

The rental apartments are situated in mature residential submarkets with neighbourhood amenities.

Morgan Laughlin, PGIM Real Estate’s head of Japan, said Japanese multifamily sector had performed defensively during the COVID-19 pandemic, and PGIM would look to  drive rental growth and capital appreciation of the assets.

PGIM Real Estate Core Asia Fund raised US$447m at its first close in September 2019 and was seeded with a US$290m portfolio, including a multifamily asset in Japan.