M&G Real Estate is investing €239m to acquire two residential assets, in Barcelona and Madrid, in a move to expand its living footprint in Spain.
The transactions were made on behalf of the M&G European Property Fund and comprise an affordable build-to-rent (BTR) scheme in Valdebebas in Madrid and a newly developed living asset in Barcelona that is aimed at students, tourists and workers seeking short to medium-term accommodation.
M&G said both assets meet “top ESG standards”, with BREEAM Excellent certification for the Barcelona development and BREEAM Very Good for the Madrid scheme, plus a WELL Platinum rating for the Barcelona asset.
Federico Bros, director of investment and asset management for M&G Real Estate Iberia, said: “These acquisitions exemplify our ability to secure unique opportunities to access high-demand residential markets, from living in Barcelona to affordable BTR in Madrid. With these two highly sustainability focused assets, we are targeting long‑term, inflation‑resilient income, while partnering with best‑in‑class developers and operators.”
Simon Ellis, fund manager of the M&G European Property Fund, added: “As the real estate cycle turns, living is emerging as an important income engine for institutional portfolios, and we have significantly increased our exposure to this sector as a consequence. Southern Europe offers compelling fundamentals – undersupply and demographic growth – making Spain a core market for investors seeking durable returns and inflation protection.”
These assets expand M&G’s Living portfolio in Iberia, which already includes two schemes in Bilbao and Valencia and two in Lisbon, bringing M&G’s living assets under management in the region to €510m.
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