M&G Real Estate sells Tokyo residential tower
The 23% net operating income increase and sale 15 months ahead of plan signal that active asset enhancement could accelerate returns in Tokyo mixed-use residential investments.
M&G Real Estate sold the 298-apartment Frontier Shinjuku Tower reportedly for JPY38 billion after buying it for JPY30 billion in January 2024.
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M&G Real Estate has sold Frontier Shinjuku Tower, a 24-storey building in Tokyo, Japan for an undisclosed sum.
According to Mingtiandi, the building was sold to flexible living provider Dash Living for JPY38 billion (about $309 million).
Frontier Shinjuku Tower has 298 residential apartments, alongside retail and office space. M&G had purchased the tower in January 2024 for JPY30 billion.
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The real estate investment manager carried out enhancements to the building, including upgrading shared amenities and repurposing underutilised space. It also introduced sustainability initiatives, with the development achieving a CASBEE S rating, the highest rank under Japan’s green building certification.
The sale of Frontier Shinjuku Tower follows a 23% increase in the building’s net operating income, said M&G in a Sept 28 release. The transaction was also completed 15 months ahead of M&G’s original business plan.
“Frontier Shinjuku Tower presented an opportunity to acquire a high-quality asset and create additional value through targeted improvements and active management,” said Jing Dong Lai, CEO and chief investment officer of M&G Real Estate Asia.
“The strong income growth achieved during our ownership, combined with an accelerated sale, demonstrates how local market expertise and disciplined execution can deliver attractive outcomes for investors,” he added.