M&G Investments buys care home for European long-lease fund
M&G Investments has acquired a care and assisted living home in Sweden for its European long-lease strategy.
The asset manager said it bought the newly developed property in Visby, from Magnolia, for €15m on behalf of M&G European Secured Property Income Fund.
M&G said a 25-year lease has been agreed with the Municipality of Gotland that will provide M&G’s investors with long-term income growth in line with inflation.
Ben Jones, a fund manager at M&G Investments, said: “Many of our pension fund and insurance clients continue to seek long-term exposure to real estate but through de-risked income driven strategies.
“Not only do long-lease assets provide this, they also generate income that increases in line with inflation.”
Peter Riley, the deputy fund manager at M&G Real Estate, said: “This is our first acquisition in Sweden on behalf of the fund.
“With a competitive and diversified economy and a stable economic outlook, the country is one of our primary targets. With additional capital to deploy we continue to seek high-quality long lease transactions across a broad range of countries and sectors within continental Europe.”
Launched two years ago, the M&G European Secured Property Income Fund has completed nine transactions across seven countries and has reached €350m.