M&G Real Estate, part of M&G’s €86 bn private markets’ business, has committed to forward funding a €44 mln micro-living development scheme with 291 private apartments in France, close to the city of Geneva.
The acquisition, on behalf of the M&G European Living Property Fund, is the Fund’s first investment in France and perfectly aligns to the strategy of investing in high quality properties in Europe’s most desirable residential markets.
The development will provide one or two bedroom apartments, ranging in size and designed for single occupants, with significant amenity for co-working. Residents will enjoy communal amenity spaces such as a roof top restaurant, sport facilities with gym, padel tennis courts and space dedicated to social events.
The development scheme is well-positioned in the city of Ferney-Voltaire, a town in the cross-border metropolitan area of Geneva.
With easy access to Geneva city centre and the international airport, the 9,900 m2 development will be built under the latest RE2020 environmental standards, targeting a BREEAM “Very Good” certificate.
Developed by Demathieu Bard Immobilier, a French developer, the project will reach completion in December 2026, and will be operated by The Babel Community, an established specialist of the French micro-living sector.
Antonin Prade, investment director at M&G Real Estate for France, said: 'The French operated residential sector – and in particular co-living – offers strong fundamentals for institutional, long-term investors like M&G. The development in Ferney-Voltaire benefits from a great location and will provide a smart solution in a region suffering from a structural housing shortage and, in turn, will offer the potential for attractive risk-adjusted returns to our investors.'
Marcus Eilers, head of European Residential at M&G Real Estate, added: 'We are very pleased to add this high-quality development to our portfolio, the fund’s first asset in the very sought-after French residential sector, and we continue to look for further opportunities with developers and property owners across key European markets. As we enter the next real estate cycle, sectors once considered to be 'alternative' are now viewed as mainstream by many institutional investors. We expect the Living sector to be the main beneficiary as investors move to take advantage of today’s attractive entry point.'
