News: M&G raises €578m for new European property fund - Investment Week
By Elliot Gulliver-Needham - M&G has raised €578m for a new European property fund, aiming to build off the firm's £1.3bn UK residential property investment strategy. The M&G European Living Property fund invests in student, private rented sector and retirement housing, and aims to provide investors with index-linked rental income, house price exposure and geographical diversification.
The fund's UK counterpart has provided about 3,500 rental homes to date. Launching with €578m in capital, funding for the European strategy comes from a €400 million investment from Dutch asset managers MN and a €178m investment from the Prudential With Profits Fund.
It has made a €75m maiden investment of 124 recently refurbished apartments, which are the first building in Finland to receive the highest green building certification for its class in Europe. The move is a shift from the property fund scene in the UK, with M&G itself delaying redemptions on its £4.6bn M&G Secured Property Income, one of several funds taking such action.
Jack Daniels, CIO of M&G plc, said: "By investing in purpose built living accommodation, we can provide more homes that meet the needs of today's renters, while supporting wellbeing, sustainability and communities. Expanding the reach of our residential capabilities into continental Europe is a natural progression, building on the experience and expertise we have developed over the past decade in the UK, and complementing our growing European real estate investment platform."