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M&G
M&G Real Estate, part of M&G’s private assets and alternatives business, has acquired Minato Mirai Center Building, a prime grade office building in Yokohama for more than $700 million, on behalf of M&G Asia Property Fund. 

The state-of-the-art building has become the largest asset in the fund and is the latest in a series of deals in Japan, reaffirming M&G’s strong commitment to the region, the firm said in a statement.
 
Located south of Tokyo, the Minato Mirai Center Building has one of the highest occupancy rates in the Minato Mirai sub-market with international and domestic tenants due to its direct access to Minato Mirai Station. 
 
Located in Yokohama’s most prominent central business district of Minato Mirai, a sub-market which has applied to be the nation’s first carbon-free location by 2023; rents are up to 45 per cent lower than Tokyo’s CBD, the firm added. 

Minato Mirai is also rapidly emerging as a research and development hub, where building specifications and government grants continue to incentivise businesses to relocate their headquarters and R&D facilities to this sub-market.
 
Boasting the highest occupancy rates in the city with international and domestic tenants, the Minato Mirai Center’s structure is one of Japan’s few buildings to hold a 5-star Comprehensive Assessment System for Built Environment Efficiency rating, the firm said – the highest recognition of ESG performance available. 

The state-of-the-art design provides maximum layout flexibility, solar light tracking, reduced heat and carbon emissions for its occupiers, the firm added.
 
Welcoming the move, Jing Dong Lai, CEO and CIO, M&G Real Estate Asia, said: “M&G Real Estate has been one of the first movers amongst foreign firms in key gateway cities of Japan. With limited future office supply in Minato Mirai and Yokohama, [it is] 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, added: “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,” he said.
  
M&G Investments is part of M&G, a savings and investment business which was formed in 2017 through the merger of Prudential UK and Europe savings and insurance operation and M&G.