M&G Real Estate has increased its holdings in Japan with the acquisition of six residential properties in Tokyo. The firm invested JPY 19.4 billion, which is roughly USD 126 million, to secure the assets. This move was carried out for the M&G Asia Property strategy and the M&G Asia Living Property strategy. The deal highlights the company’s aim to find high quality housing in major global hubs that offer steady income and the chance for long term growth.

The residential sector in Japan, and Tokyo in particular, remains a strong performer for investors. Demand for rentals is supported by a growing urban population and a lack of new housing supply. Rising costs in the construction industry have also limited the number of new projects reaching the market. These factors combined make the city an ideal location for those seeking reliable value.

The newly purchased buildings are situated in established areas of Tokyo. They offer excellent transport links and are close to major work centres and local shops. The portfolio includes more than 320 homes with various apartment sizes. This variety helps the firm cater to different types of tenants in a city where good quality rental options are often hard to find.

Jing Dong (JD) Lai, Chief Executive Officer and Chief Investment Officer of M&G Real Estate Asia, said: “Japan continues to stand out as an attractive residential market, particularly in Tokyo, where demand for well located rental homes remains strong. These acquisitions demonstrate our ability to source high quality assets locally and invest with discipline in a market with long term appeal. As we expand our footprint in Japan, we remain focused on building a resilient, diversified portfolio for our investors.”

This latest transaction shows the reach of M&G across its Asian and European property strategies. The firm manages a global living portfolio worth USD 8.5 billion across developed Asia and Europe. M&G has spent over ten years building its presence in the living sector and now holds a USD 1.4 billion portfolio in the Asia Pacific region alone.