M&G Real Estate, the fund manager owned by Prudential and with €279 billion of assets under management, is launching a real estate strategy for binternational investors focusing on UK property.
The £580 million (€683 million) strategy is based on an existing UK property strategy, which has been managed for UK pension funds since 1971, and is currently managed by Dermot Kiernan.
According to Dermot, UK commercial real estate has become far more attractive to overseas investors following the depreciation of sterling against a range of currencies since 2007.
“The US dollar and the euro have both strengthened against sterling by 20%, while the yuan and the Singapore dollar have appreciated by even greater amounts. UK property values are still about 30% below their peak, so the weaker pound offers a double discount.”
M&G Investments this week formally rebrands its real estate business, formerly known as PRUPIM, to M&G Real Estate.
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