M&G Real Estate has acquired a 65% stake in BauMont Real Estate Capital Limited, a European real estate fund manager specialising in value-add investment strategies across Western Europe.
M&G Investments, part of M&G plc, manages a private markets business with six core areas, including real estate. Established in 2017, BauMont operates out of Paris and London with an 18-member team with an investment track record of more than 20 years in European value-add real estate. This acquisition marks a strategic move by M&G to expand its capabilities across the European real estate market and provide investment opportunities across the full property cycle.
BauMont will collaborate with M&G’s £40 billion global real estate business, allowing M&G to extend its offerings beyond core commercial, residential, and debt strategies, with investment opportunities across the full property cycle. BauMont, in turn, will gain from M&G’s extensive pan-European platform and expanded global distribution capabilities to meet the growing demand from institutional investors in Europe and Asia.
Tony Brown, global head of M&G Real Estate, said: “This new partnership is an opportunity to broaden the real estate strategies we offer at a time when the asset class is back in focus for global institutional clients who are considering increasing their allocations at this stage in the cycle.”
BauMont’s latest fund, backed by M&G’s With-Profits Fund with a €200 million investment, has raised over €450 million. This capital injection will allow the fund to target high-return properties in key European markets like the UK and France, catering to M&G’s 4.6 million UK policyholders seeking enhanced returns in real estate.
Robert Balick, managing partner at BauMont, added: “European real estate markets are adjusting to the higher rate environment and are entering a new cycle of growth where demand is focused on a limited supply of high-quality assets. Value-add strategies can take advantage of re-set entry pricing, whilst actively repositioning assets to meet the needs of modern occupiers.”
M&G Real Estate was advised by CBRE Investment Banking.
