M&G Investments has unveiled plans to build a £1bn+ portfolio of more than 3,000 multi-family rents homes in London and UK regional cities where there are housing shortages.
The firm will fund housing developments over the next three years on behalf of one of Asia’s leading pension funds and M&G’s £130bn With Profits Fund.
M&G and the Asian pension fund have both injected £300m of equity into the vehicle, which will use leverage to accelerate value creation and enable the development of more homes, primarily in London – as well as in Manchester, Bristol, Birmingham and Leeds.
Martin Towns, global head of M&G Real Estate, said: “This is a powerful demonstration of our business model in action – mobilising international capital to invest into UK housing in a sector where there is a shortage of high quality homes. Through our investment into the real economy we can build more homes where they are most needed, whilst delivering resilient, long-term returns for pension savers in both the UK and internationally.”
