M&G launches £578m European Living Property Fund
M&G Real Estate has launched a European Living Property Fund to expand its residential capability and European real estate fund range and build on its £1.3bn UK living strategy.
M&G aims to provide institutional investors with attractive risk-adjusted returns through investment in Europe’s residential sectors – student housing, single and multi-family housing, and retirement living.
One of the key aims of the fund will be providing low-carbon and energy-efficient housing across Europe, as it has committed to achieving net-zero carbon across its global portfolio by 2050.
M&G Real Estate has launched a European Living Property Fund to expand its residential capability and European real estate fund range and build on its £1.3bn UK living strategy.
M&G aims to provide institutional investors with attractive risk-adjusted returns through investment in Europe’s residential sectors – student housing, single and multi-family housing, and retirement living.
One of the key aims of the fund will be providing low-carbon and energy-efficient housing across Europe, as it has committed to achieving net-zero carbon across its global portfolio by 2050.
M&G European Living Property Fund has launched with €400m (£350m) of investment from MN, one of the largest pension administrators and asset managers of Dutch pension funds, which is diversifying and internationalising its residential exposure and €178m from an M&G internal client fund which is increasing its weighting to alternatives in Europe.
The fund has already made its first investment of €75m in Finland, in a landmark art nouveau building that is home to 124 premium serviced apartments in central Helsinki, which will form the new heart of the Katajanokka district.
The acquired asset is five-minute walk from the city’s central business district. A mix of retail outlets at ground level is a direct result of a survey carried out with residents and includes restaurants, grocery stores, and health and beauty outlets.
The fund will be led by head of European residential Marcus Eilers from M&G’s Frankfurt office, as part of M&G’s wider residential platform led by Alex Greaves, head of UK and European living.
Eilers said: “With clear supply/demand imbalances across Europe’s residential spectrum, we have a vast landscape of opportunity and a chance to combine a resilient – and mostly inflation-linked asset class – with geographical diversification. We are looking to acquire highly ESG-accredited assets in locations with strong underlying demographics to deliver compelling returns for our clients.”
Greaves added: “This is a natural progression of our successful UK living strategy; we look forward to combining our capability with Marcus’s broad living sector expertise and background in large-scale residential operating platforms.”
Joep Barten, senior fund manager, international real estate at MN, said: “By increasing exposure to residential real estate in Europe, we aim to secure long-term returns for our clients, PMT and PME. The focus on sustainability and the fund manager’s long track record played an important part in placing this newly committed capital.”
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