M&G Real Estate has launched a new European property fund for institutional investors, building on the firm’s €1.5 billion ($1.6 billion) U.K. living strategy.
The vehicle launched with €578 million ($619 million) of investor commitments. The lion’s share of that — €400 million ($428 million) of investments — came from long-standing client MN, one of the largest pension administrators and asset managers of Dutch pension funds. The remaining €178 million ($190 million) came from an internal client fund that is upweighting to alternatives in Europe.
The M&G European Living Property Fund will invest into Europe’s residential sectors, including student housing, single and multifamily housing, and retirement living. The fund has already made a €75 million ($80 million) maiden investment in Finland — a landmark Art Nouveau building home to 124 premium-serviced apartments in central Helsinki.
“With clear supply/demand imbalances across E
