M&G has launched a sustainable housing fund targeting students, the private rented sector and retirement accommodation across Europe.
The M&G European Living Property Fund is designed to provide institutional investors with index-linked rental income, house price exposure and geographical diversification.
In addition, the firm is also aiming to reduce sector imbalances and support the additional supply of high-quality and sustainable housing.
The fund launches with a €400 million investment from Dutch asset manager MN and €178 million from the £133 billion Prudential With Profits Fund.
Marcus Eilers, who was appointed head of European residential at M&G in October, will oversee the management of the fund. Prior to joining the firm, Eilers served as head of residential asset management at Roundhill Capital.
M&G European Living Property has already acquired €75 million of assets in Finland, buying 124 apartments in central Helsinki. The firm said these apartments are located in the first Finnish building to receive the highest green building certification and represent the assets this strategy will target.
Jack Daniels, chief investment officer at M&G, 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.”
The fund expands M&G’s international real estate fund and builds on the firm’s UK residential property investment strategy.
The €1.5 billion investment strategy has provided approximately 3,500 rental homes to date.
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