M&G Real Estate, part of M&G’s €86 bn private markets business, has acquired two residential properties in Germany and Portugal on behalf of the €600 mln M&G European Living Property Fund, launched in January this year.
Supported by strong on the ground origination teams in continental Europe, these new acquisitions align with the fund’s principle to invest in high quality properties with strong sustainability standards in Europe’s most desired residential markets, the company said in a statement.
In central Berlin, standing residential building for €36.5 mln in an off market deal. Located at Park am Gleisdreieck and split across 7 floors, the building offers 67 high quality private rented apartments, 48 of which are available at open market rent.
The property includes 19 subsidised apartments which are fully let, providing more affordable housing in Germany’s second most expensive city. With vacancy rates under 1% in Berlin and planning permissions falling across the country, assets like this have become especially sought-after by investors.
In Lisbon, purpose-built student accommodation development for €34.7 mln. The scheme will offer 333 beds, split into 315 single studios and 9 twodios, in the Olaias district within walking distance from Instituto Superior Técnico Lisboa.
Marcus Eilers, head of European Residential at M&G Real Estate, said: 'We are pleased to be able to source and originate these high-quality assets, which will deliver best-in-class living space in markets with large housing undersupply while helping to provide attractive, risk adjusted returns to institutional investors in the strategy. The residential sector in Europe is showing its defensive traits, remaining resilient of current economic headwinds and offering strong diversification potential to investors’ portfolios.'
M&G Real Estate is a major property investor with €36 bn of assets under management covering real estate equity and debt strategies. In Europe, M&G Real Estate has offices in Amsterdam, Frankfurt, Luxembourg, Madrid, Milan, Paris, and Stockholm.
