M&G Real Estate is financing a €62.1m student accommodation development in central Bologna, Italy.

The manager’s €4bn M&G European Property Fund has agreed to fund the development of the 513-bed purpose-built scheme being developed by Stonehill.

The 15-storey building is expected to be ready for occupation by students in summer 2022.

David Jackson, manager of the M&G European Property Fund, said: “This acquisition will increase the fund’s exposure to the rapidly growing institutional residential markets across Europe, providing strong diversification and rental growth potential.

“We particularly like the opportunities we are seeing in France, Italy, The Netherlands and the Nordics and are actively looking to increase our exposure in those markets.

Alex Greaves, head of residential investment, M&G Real Estate, said: “Residential accommodation is a consumer product, which requires tailoring apartments, homes and rooms to their target demographic and geography in a sustainable way, which is what we have been doing in the UK since 2013.

“Combining the knowledge and experience of our European team with our expertise of residential investment in the UK demonstrates that not only can we create increased capacity to identify and structure further deals, but we can provide clients with access to quality real estate with long term value across the spectrum, from student accommodation to senior living.”

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