M&G Real Estate has been awarded a $500m (€474m) mandate to invest in UK real estate by an unnamed European investor.

The investment manager, owned by Prudential insurance company, said it will seek direct real estate investment opportunities across all main property types in primary UK markets.

The commitment comes at a time of heightened uncertainty following the UK’s vote to leave the European Union in June last year. At the time, M&G Real Estate said in a note that the market would avoid a crash, while rents and capital growth would come under pressure.

Chief executive Alex Jeffrey said, in the wake of the EU referendum, the commitment by a major European investor signals confidence in the UK real estate market and confirms the status of UK commercial property as a “compelling asset class on a long-term basis”.

Last year, M&G said the UK would “deliver more modest returns than the exuberance of recent years”.

It said: “Rents and capital values may come under pressure but that in turn may create attractive opportunities for experienced investors with long horizons.”