MN, the asset manager of Dutch pension funds PMT and PME, has committed €400m to a newly launched M&G Real Estate European living fund.
M&G said in addition to MN’s commitment to the M&G European Living Property Fund at launch, the fund has also raised €178m from an M&G internal client fund which is up weighting to alternatives in Europe.
The European fund, which targets student housing, single and multifamily housing and retirement living assets has so far invested €75m to buy 124 premium serviced apartments in Finland as its first investment. The recently refurbished Art Nouveau building home is located in central Helsinki.
Joep Barten, a real estate portfolio manager at MN, said: “By increasing exposure to residential real estate in Europe, we aim to secure long-term returns for our clients PMT and PME.
“The focus on sustainability and the fund manager’s long track record played an important part in placing this newly committed capital.”
M&G’s head of European residential, Marcus Eilers, will lead expansion into the European living sector. The latest strategy expands M&G’s residential capability and European property fund range, building on the manager’s €1.5bn UK living strategy.
Alex Greaves, head of M&G Real Estate’s UK and European Living business, said: “This is a natural progression of our successful UK Living strategy. We look forward to combining our capability with Marcus’s broad living sector expertise and background in large-scale residential operating platforms.
“We are very happy to have partnered with MN and to have secured their trust and commitment as a long-term investor.”
Eilers said: “With clear supply/demand imbalances across Europe’s residential spectrum, we have a vast landscape of opportunity and a chance to combine a resilient – and mostly inflation-linked asset class – with geographical diversification.
“We are looking to acquire highly ESG-accredited assets in locations with strong underlying demographics to deliver compelling returns for our clients.”
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