M&G Real Estate has teamed up with an Asian pension fund to invest £1bn (€863m) to develop UK multifamily housing over the next three years.
M&G’s With Profits Fund and the unnamed pension fund have each contributed £300m in equity to create the venture.
The vehicle will use leverage to accelerate value creation, enabling the development of over 3,000 rental homes in London and regional cities and creating a portfolio expected to exceed £1bn.
Martin Towns, global head of M&G Real Estate, said: “This is a powerful demonstration of our business model in action – mobilising international capital to invest into UK housing in a sector where there is a shortage of high quality homes.
“Through our investment into the real economy we can build more homes where they are most needed, whilst delivering resilient, long-term returns for pension savers in both the UK and internationally.”
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