Singapore / Hong Kong / Japan, 28 September 2026 - M&G Real Estate (M&G), part of M&G's USD 110 billion1 private markets business, has sold Frontier Shinjuku Tower, a 24-storey mixed-use property in Tokyo's Nishi-Shinjuku district, after increasing the building's net operating income by 23%. The property comprises 298 residential apartments, alongside retail and office space.
The sale was completed 15 months ahead of the original business plan, following a targeted programme of asset enhancements designed to improve the property's performance and tenant experience. The building maintained strong occupancy levels throughout the holding period, while positive rental growth was achieved across both new and renewed leases. Situated close to Hatsudai and Shinjuku stations, the property benefits from strong connectivity and sustained demand for well-located rental housing in Tokyo.
Since acquiring the asset in December 2023 on behalf of its value-add investment mandate, M&G upgraded shared amenities, including the fitness centre, repurposed underutilised space and introduced sustainability initiatives. Frontier Shinjuku Tower achieved a CASBEE S rating, the highest rank under Japan's green building certification system.
The transaction highlights M&G's value-add real estate capabilities, combining more than two decades of investment experience in Asia with active asset management to enhance performance and create value for investors. Since 2019, M&G has pursued Asia value-add opportunities through a separately managed account investing across the office, logistics, residential, hospitality and alternative property sectors. Its European value-add capability was further strengthened by the acquisition of BauMont Real Estate Capital in 2024, which is now scaling across the European region.
Jing Dong (JD) Lai, Chief Executive Officer and Chief Investment Officer of M&G Real Estate Asia, said: "Tokyo's residential market continues to benefit from strong demand and limited supply in well-connected locations. Frontier Shinjuku Tower presented an opportunity to acquire a high-quality asset and create additional value through targeted improvements and active management. 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."