M&G Real Estate has acquired 67 social housing apartments in Ireland’s capital on behalf of its European secured property income fund.

The manager said the M&G European Secured Property Income Fund has invested €31.3m to acquire the Butter Yard in Blackrock, Dublin.

The recently completed asset is let to Dun Laoghaire Rathdown County Council for social housing use on a 25-year term, the manager said.

The 42,068sqft development comprises two apartment blocks of 67 one and two-bedroom homes.

Lee McDowell, manager of the M&G European Secured Property Income Fund, said: “This acquisition adds exposure to a well-performing sector in a growing European city, while increasing portfolio diversification. The European residential sector has good fundamentals, and Dublin in particular has a strong demand for high-quality, sustainable housing alongside limited supply.

“The long-term lease agreement with Dun Laoghaire Rathdown County Council follows our strategy of securing reliable, long-term cash flows, which grow in line with inflation. We will continue to target similar opportunities as we grow the fund.”

The M&G European secured property income fund, which currently stands at around €800m, acquires properties with a long-dated lease of 15 years or more.

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