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19 January 2023

M&G Real Estate Asia increases commitment to Asia logistics; becomes majority shareholder in Japan's ESR Ichikawa Distribution Centre

2023
SINGAPORE/HONG KONG/JAPAN/LONDON, 19 January 2023 – M&G Real Estate Asia (M&G) – part of M&G plc’s £76.7 billion private assets and alternatives business, through its M&G Asia core property strategy, has become a majority shareholder in the fully leased ESR Ichikawa Distribution Centre, in a deal which builds on its geographical footprint in Japan and its strong relationship with ESR as developer and operator of the logistics facility. It further increases its exposure to the logistics sector and reaffirms its commitment to its logistics strategy in Asia. Through this JP¥ 34 billion/ US$ 267* million acquisition, M&G has raised its stake in the asset from 25% to 58.3%.

Located in the prime distribution submarket of Ichikawa City in the Greater Tokyo Bay Area, this state-of-the-art four-storey asset carries the CASBEE S rating and holds one of Japan's most prestigious awards for outstanding green design innovations. It is the Fund’s largest logistics facility with circa 201,111 sq. m. of rentable space in an area favoured by leading e-commerce companies and third party logistics providers due to its optimal supply routes into central Tokyo and Haneda International Airport.

"Increasing our stake makes sense on multiple fronts," explains Richard van den Berg, fund manager of M&G’s Asia core property strategy. "Acquiring a majority stake at an attractive going-in yield is an important milestone for M&G as we double down on our conviction and commitment to Japan’s logistics sector, which we believe will continue to play a pivotal role in the country's economy as demand for high quality assets remains robust. Ichikawa Distribution Centre with its high ESG credentials is well-positioned to deliver stable and long-term value, backed by the strong fundamentals of the Japanese market.”

* Source: xe.com: 1 JP¥ = 0.00784669 USD = 1 USD = 127.442 JPY as at 16 January 2023

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M&G Investments is part of M&G plc, a savings and investment business which was formed in 2017 through the merger of Prudential plc’s UK and Europe savings and insurance operation and M&G, its wholly owned international investment manager. M&G plc listed as an independent company on the London Stock Exchange in October 2019 and has £348.9 billion of assets under management (as at 30 June 2022). M&G plc has customers in the UK, Europe, the Americas and Asia, including individual savers and investors, life insurance policy holders and pension scheme members.

For nearly nine decades M&G Investments has been helping its customers to prosper by putting investments to work, which in turn creates jobs, homes and vital infrastructure in the real economy. Its investment solutions span equities, fixed income, multi asset, cash, private debt, infrastructure and real estate.

M&G recognises the importance of responsible investing and is a signatory to the United Nations Principles for Responsible Investment (UNPRI) and is a member of the Climate Bonds Initiative Partners Programme.

M&G plc has committed to achieve net zero carbon emissions on its total book of assets under management and administration by 2050 and committed to reduce operational carbon emissions as a corporate entity to net zero by 2030.

M&G’s real estate business, with £33.5 billion under management (as at 30 June 2022), is a leading financial solutions provider for global real estate investors, has a sector leading approach to responsible property management and is committed to continuously improving the sustainability performance of its funds.

For more information, please visit: https://global.mandg.com/ 

This press release reflects the authors’ present opinions reflecting current market conditions; are subject to change without notice; and involve a number of assumptions which may not prove valid. It has been written for informational purposes only and should not be considered as investment advice or as a recommendation of any particular security, strategy or investment product. Past performance is not a guide to future performance.

The services and products herein are available only to investment professionals and are not available to individual investors, who should not rely on this communication. Information given in this document has been obtained from, or based upon, sources believed by us to be reliable and accurate although M&G does not accept liability for the accuracy of the contents.

Issued by M&G Investment Management Limited (unless stated otherwise), registered in England and Wales under number 936683, registered office 10 Fenchurch Avenue, London EC3M 5AG. M&G Investment Management Limited is authorised and regulated by the Financial Conduct Authority. M&G Real Estate Limited is registered in England and Wales under number 3852763 and is not authorised or regulated by the Financial Conduct Authority. M&G Real Estate Limited forms part of the M&G Group of companies.
In Hong Kong: Issued by M&G Investments (Hong Kong) Limited. Office: Unit 1002, LHT Tower, 31 Queen’s Road Central, Hong Kong. In Singapore: Issued by M&G Real Estate Asia Pte. Ltd. (Co. Reg. No. 200610218G), regulated by the Monetary Authority of Singapore.

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M&G plc, incorporated and registered in England and Wales. Registered office: 10 Fenchurch Avenue, London EC3M 5AG. Registered number 11444019. M&G plc is a holding company, some of whose subsidiaries are authorised and regulated, as applicable, by the Prudential Regulation Authority and the Financial Conduct Authority.

M&G plc is a company incorporated and with its principal place of business in England, and its affiliated companies constitute a leading savings and investments business. M&G plc is the direct parent company of The Prudential Assurance Company Limited. The Prudential Assurance Company Limited is not affiliated in any manner with Prudential Financial, Inc, a company whose principal place of business is in the United States of America or Prudential plc, an international group incorporated in England and Wales.

M&G plc は、イングランド及びウェールズで設立・登録。本社登録地は10 Fenchurch Avenue, London EC3M 5AG。登録番号11444019。M&G plcは持ち株会社で、その子会社の一部はPRA(健全性監督機構)及びFCA(金融行為規制機構) に認可され、それらの規制対象となっています。

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M&G plc is a company incorporated and with its principal place of business in England, and its affiliated companies constitute a leading savings and investments business. M&G plc is the direct parent company of The Prudential Assurance Company Limited. The Prudential Assurance Company Limited is not affiliated in any manner with Prudential Financial, Inc, a company whose principal place of business is in the United States of America or Prudential plc, an international group incorporated in England and Wales.