M&G Real Estate has partnered with DeA Capital Real Estate, through its M&G European Property Fund, to invest in Italian real estate.
Through MEP Italy, an Italian SICAF vehicle managed by DeA Capital, M&G has acquired three logistics assets in Greater Milan for approximately €85m from Principal Asset Management.
The three fully-let logistics assets in Vignate, Biandrate, and Rho, total over 110,500sqm. M&G plans to upgrade the assets.
Simon Ellis, fund manager of the M&G European Property Fund, said: “This acquisition reflects our continued conviction in the logistics sector across Europe, where structural demand drivers remain strong. By investing further in these assets to improve their quality, we aim to deliver long-term value and performance for our clients, while further diversifying the fund’s portfolio.”
Gabriele Inglese, director asset management, M&G Real Estate Italy, added: “Milan is a leading European city with strong fundamentals and a promising outlook driven by its cultural dynamism, tourism and shopping.
“Greater Milan is Italy’s leading logistics hub, and this portfolio allows us to deepen our presence in a market characterised by strong occupier demand and limited supply. This investment underlines our long-term commitment to the Italian market, as well as our focus on delivering resilient, high-quality opportunities for our investors.”
DeA Capital said MEP Italy may invest directly or indirectly in residential, commercial, logistics, industrial and mixed-use properties, including assets under construction, development land and real estate rights. It added that investments may be made through units of real estate funds, property companies or other authorised investment vehicles, in accordance with risk-diversification principles.
Non-core investments may account for up to one-third of the SICAF’s total value, it said, adding that all investments must relate to properties located in Italy.
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