On behalf of its Asia core real estate strategy, PGIM Real Estate has acquired a six-building multifamily portfolio located across Tokyo and Yokohama, Japan, valued at approximately US$120 million. PGIM Real Estate is the real estate investment and financing business of PGIM, the US$1.4 trillion global investment management business of Prudential Financial, Inc. (NYSE: PRU).
The portfolio consists of newly completed mid-market residential buildings, with a total of 353 residential units. Five of the properties are located in Tokyo and one is located in Yokohama, just south of Tokyo. All are situated in mature residential submarkets with neighborhood amenities and access to nearby metro and rail lines within a short walking distance.
“This portfolio presents an attractive investment opportunity due to its combination of strong property locations and stable in-place cash flows,” said Benett Theseira, PGIM Real Estate’s head of Asia Pacific. “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, which will support long-term growth across the portfolio.”
The portfolio primarily features studio and one-bedroom units, ideal for single professionals and couples seeking convenient locations within metro Tokyo. Construction for all assets was completed in 2020, and the portfolio has experienced strong leasing activity to reach stabilization in a relatively short period.
Morgan Laughlin, PGIM Real Estate’s head of Japan, added that “PGIM Real Estate has a long history of investing in the multifamily residential sector in Japan. It has been a defensive asset class and we will leverage our deep development and asset management expertise in the sector to drive rental growth and capital appreciation, despite the COVID-19 pandemic.”