M&G launches latest real estate debt funds with €411m at first close

M&G Investments has held a first close of its latest vintage of real estate debt funds, including £350 million (€411 million/$448 million) of capital from four clients. The capital will be deployed into real estate loans across Europe originated by M&G’s market-leading Real Estate Finance team.

The latest funds have reached a first close, with £200 million (€235 million/$256 million) investment from LGPS Central Limited, £100 million (€117 million/$128 million) from the Prudential With Profits Fund and £25 million (€29 million/$32 million) from one of the United Kingdom’s largest insurers. M&G will be raising further capital for these funds and segregated mandates during the next 18 months from global institutional investors seeking potentially double-digit returns available from direct commercial real estate loans in Europe.

The €1.5 trillion ($1.6 trillion) real estate finance market has changed considerably in the past 15 years. It wa