M&G’s European Living Fund makes €82 million maiden investment into German Senior Living sector

London/Frankfurt, 29 April 2025 – M&G Real Estate has acquired an €82.5 million senior living scheme in Erftstadt on behalf of its €578 million European Living Property Fund (the Fund), marking its first investment into the German senior living sector. The Fund launched in 2023 and aims to provide institutional investors with attractive risk adjusted returns through investment into Europe’s residential sectors – student housing, single and multifamily housing and retirement living.

The scheme will be leased on a 25-year term to Schönes Leben Group, who since 2017, has become Germany’s fastest-growing provider of premium quality senior living residential accommodation with more than 700 beds in six locations.

Built to the highest sustainability standards with premium level amenities, the 17,826 sqm new-build scheme includes 163 self-catering apartments with a small share of care units designed to ensure that individuals with higher care needs can be supported on-site through home care services or daycare.¹Its rural location, close to a nearby country and golf club and accessible cultural activities in Cologne and Bonn just 30 minutes away attract residents from the Rhineland Metropolitan, Greater North Rhine Westphalia regions and the Frankfurt area.

Marcus Eilers, Head of European Residential at M&G Real Estate, said: “This is the M&G European Living Property Fund’s second acquisition in Germany and its first investment in a high-calibre senior residential property with strong sustainability credentials. The significant growing demand for high-end senior living accommodation, coupled with the defensive nature of healthcare real estate, makes this an attractive asset class for institutional investors.”

Thomas Kächele, Head of Germany and Central Eastern Europe at M&G Real Estate commented: “As demand for residential accommodation accelerates across Europe, we are looking to increase our investments, especially in Germany, where senior living has become mainstream within institutional portfolios. With only 30 homes per 1000 people over the age of 70, Germany’s senior housing market can unlock strong growth potential for investors.”

Kip Sloane, Managing Director Schönes Leben Group, adds: “M&G Real Estate's investment is a strong signal for the Schönes Leben Group and underlines the value and future viability of the premium senior living segment in Germany. We are very pleased working with M&G and to have signed a pioneering green lease. This shows that the premium senior living asset class can be marketed internationally as a residentially rated project.”

M&G’s €90 billion Private Markets business comprises six core centres of excellence. This includes real estate, of which M&G Real Estate is the 11th largest real estate manager globally of those headquartered outside of the US, with nine offices in Europe and four in Asia Pacific. With more than €40 billion in assets under management covering both real estate equity and debt strategies, M&G Real Estate’s platform provides global market insight and the ability to deliver a variety of compelling strategies to clients.

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Notes to editors

¹ 90% occupancy rate

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M&G Investments is part of M&G plc, a savings and investment business which was formed in 2017 through the merger of Prudential plc’s UK and Europe savings and insurance operation and M&G, its wholly owned international investment manager. M&G plc listed as an independent company on the London Stock Exchange in October 2019 and has €418.4 billion of assets under management (as at 31 December 2024). M&G plc has customers in the UK, Europe, the Americas and Asia, including individual savers and investors, life insurance policy holders and pension scheme members.

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Reframing later life