M&G Real Estate makes first residential acquisition in Germany
M&G Real Estate has made its first private rented sector deal in Germany following an agreement to finance the construction of 230 apartments in Bad Homburg vor der Höhe, near Frankfurt.
The funding has been agreed on behalf of the €4.4 billion ($5.2 billion) M&G European Property Fund.
Germany retained its crown as Europe’s safe haven market in 2020, but population growth and vacancy are the key reasons for the fund’s investment into the residential sector.
The deal marks the fund’s first residential acquisition in Germany, bringing its investments in the country to more than €1 billion ($1.2 billion) across the retail, office and logistics sectors. The fund will finance three out of the seven construction sites within the Victoria Gärten development, which is located within easy reach of Frankfurt’s CBD.
David Jackson, manager of M&G European Property Fund, said, “Victoria Gärten is our first residential acquisition in Germa