M&G Real Estate has acquired two residential properties in Germany and Portugal on behalf of the €600m M&G European Living Property Fund, launched in January this year with backing from Dutch pension fund manager MN.
The fund has bought a residential building in Park am Gleisdreieck in central Berlin for €36.5m in an off-market deal.
The building has 67 private-rented apartments, 48 of which are available at open-market rent and 19 are subsidised apartments, which are fully let.
M&G also acquired a purpose-built student accommodation development in Lisbon for €34.7m.
The scheme will offer 333 beds, split into 315 single studios and nine ‘twodios’, in the Olaias district near to the Instituto Superior Técnico Lisboa university.
Marcus Eilers, head of European residential at M&G Real Estate, said: “We are pleased to be able to source and originate these high-quality assets, which will deliver best-in-class living space in markets with large housing undersupply, while helping to provide attractive, risk-adjusted returns to institutional investors in the strategy.
“The residential sector in Europe is showing its defensive traits, remaining resilient of current economic headwinds and offering strong diversification potential to investors’ portfolios.”