M&G expands living exposure in Europe with two acquisitions for €70M

London, 5 October 2023 – M&G Real Estate, part of M&G’s €86 billion¹ private markets business, has acquired two residential properties in Germany and Portugal on behalf of the €600 million M&G European Living Property strategy, launched in January this year. Supported by strong on the ground origination teams in continental Europe, new acquisitions align with the fund’s principle to invest in high quality properties with strong sustainability standards² in Europe’s most desired residential markets:

In central Berlin, standing residential building for €36.5 million 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 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 Berlin³ 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 €35 million. 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, Portugal’s most prestigious engineering university. The development will help mitigate the long-standing shortage of student accommodation in the country, where in the 2021-2022 academic year 88% of student accommodation needs were still unmatched, with Lisbon accounting for 43% of this imbalance⁴.

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 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 one of the world’s largest property investors with €36 billion⁵ 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.

Asset characteristics	PRS in Berlin	PBSA Lisbon
Price	€36.5 million	€35 million
Location	Park am Gleisdreieck	Olaias district
Units/Beds typology	67 apartments	333 beds split in 315 studios and 9 twodios
Size	5,384 sqm	9,730 sqm
Sustainability ²	Targeting BREEAM in-use Very good	Targeting BREEAM in-use Very good or better Targeting EPC label A – LEED Gold
Shared amenities	Communal garden, children’s playground and private storage space for bike parking	Gym, media room, study areas, communal kitchen and meal area, laundry room and multi-purpose room
Ready for occupation	In service	Second half of 2025

^{1, 5 As at end of June 2023

2 Sustainability traits by asset detailed in table below

3 Statista Research Department, 2021 | 4 Direçao Geral de Ensino Superior (DGES)}

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Eva Martin

Media Relations

+34 636 499 352

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Media Relations

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Notes to editors

OpenAbout M&G Investments

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 €387.8bn billion of assets under management (as at 30 June 2023). M&G plc has over 5 million customers in the UK, Europe, the Americas and Asia, including individual savers and investors, life insurance policy holders and pension scheme members.

For nearly nine decades M&G Investments has been helping its customers to prosper by putting investments to work, which in turn creates jobs, homes and vital infrastructure in the real economy. Its investment solutions span equities, fixed income, multi asset, cash, private debt, infrastructure and real estate.

M&G recognises the importance of responsible investing and is a signatory to the United Nations Principles for Responsible Investment (UNPRI) and is a member of the Climate Bonds Initiative Partners Programme.

M&G plc has committed to achieve net zero carbon emissions on its total book of assets under management and administration by 2050 and committed to reduce operational carbon emissions as a corporate entity to net zero by 2030.

For more information, please visit: www.mandg.com

This press release reflects the authors’ present opinions reflecting current market conditions; are subject to change without notice; and involve a number of assumptions which may not prove valid. It has been written for informational purposes only and should not be considered as investment advice or as a recommendation of any particular security, strategy or investment product. Past performance is not a guide to future performance.

The services and products herein are available only to investment professionals and are not available to individual investors, who should not rely on this communication. Information given in this document has been obtained from, or based upon, sources believed by us to be reliable and accurate although M&G does not accept liability for the accuracy of the contents.

This financial promotion is issued by M&G Investment Management Limited (unless stated otherwise), registered in England and Wales under number 936683, registered office 10 Fenchurch Avenue, London EC3M 5AG. M&G Investment Management Limited is authorised and regulated by the Financial Conduct Authority. M&G Real Estate Limited is registered in England and Wales under number 3852763 and is not authorised or regulated by the Financial Conduct Authority. M&G Real Estate Limited forms part of the M&G Group of companies.

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