M&G diversifies core Asia portfolio with Japanese acquisition (JP)

As part of its strategy to improve diversification and provide consistent, long-term income in its core Asia real estate portfolio, M&G Real Estate has acquired Merado Daikai, a retail property in an established urban residential neighborhood of central Kobe, Japan.

The property was purchased under M&G Real Estate’s core Asia real estate investment strategy overseen by Fund Manager Erle Spratt, which is aimed at institutional investors in Asia, the UK and Europe. Japan now accounts for 3% of the core Asia portfolio.

Merado Daikai is a five storey retail and office property adjacent to major transport links in Kobe. The property is primarily non-discretionary retail space, i.e. the majority of customer purchases tend to be regular and comprise mainly essentials such as food and pharmacy items.

M&G Real Estate has seen a marked increase in investor appetite for Asian real estate in 2013, with new third party investors committing US$137 million to its core Asia real estate strategy since the start of 2013. The firm says that smaller pension schemes and insurance companies are increasing allocations and committing new capital to the asset class, with particularly strong interest from investors in the UK, other parts of Europe and the Americas as well as growing interest from institutional investors in Asia.

Source: M&G Real Estate

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