M&G has launched a new €578m European Living Property Fund, which will invest in student housing, single and multi-family housing and retirement living assets across Europe.
The fund, which launched with €400m of investment from MN and €178m from an M&G internal client fund which is upweighting to alternatives in Europe, has already made its first investment acquiring a serviced apartments building in Helsinki, Finland, for €75m. The landmark building, which is home to 124 premium serviced apartments, was recently refurbished and received a LEED Platinum score.
Marcus Eilers, head of European residential at M&G, will lead the fund’s expansion into the European living sector from the company’s Frankfurt office as part of M&G’s wider residential platform led by Alex Greaves, head of UK and European living.
Greaves said: “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. We are very happy to have partnered with MN and to have secured their trust and commitment as a long term investor.”
Joep Barten, portfolio manager, real estate, at MN, added: “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.”
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.”
