MGPA acquires multi-office portfolio in Japan

The seven Tokyo properties represent 97% of the acquisition value, and five of those are located in Tokyo's central five wards. The portfolio has a total gross floor area of approximately 350,000 square feet.

The supply of new space in the Tokyo office market over the next several years is expected to be 30% below the long-term average, so property prices are expected to accelerate. Rio Minami, managing director of MGPA Japan, said the demand for office space could be surprisingly strong, given that Japan is witnessing strong prospects for economic growth relative to much of the developed world.

"This is an exciting and meaningful acquisition for Asia Fund III and in light of the high yields in Japan's real estate market and early evidence of stronger tenant demand in Tokyo, we are confident of delivering a solid return on investment in the short-term as well as growth potential over the projected holding period," says Minami.

Established in January 2007, MGPA Asia Fund III has equity commitments of $3.9 billion across the Asia region, nearly $2 billion more than its predecessor, which was launched in 2005. The portfolio of Fund III includes a number of commercial and residential properties in Japan, Singapore, China and Thailand.

Focused on real estate investment in Europe and Asia, MGPA currently manages approximately $11 billion in assets throughout these two regions.

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• Topics
• North Asia
• Real estate
• Japan
• Real estate