M&G launches first long-lease fund targeting continental Europe

M&G Investments has announced the launch of its first pooled institutional fund to invest in long-lease real estate in continental Europe. The fund will continue the strategy the firm has established in the United Kingdom, where M&G has a £3 billion ($4.3 billion) U.K. long-lease strategy.

“A new European financing landscape is emerging following the financial crisis, where pension funds and institutional investors, the natural owners of long-term capital, are providing long-term finance where banks previously dominated the market,” said Simon Pilcher, chief executive, fixed income, with M&G Investments, in a statement. “European companies are beginning to seek alternative ways to raise finance, with sale-and-leaseback being an increasingly popular option.”

The M&G European Secured Property Income Fund offers pension funds and other institutional investors income growing in line with inflation through investment in