M&G to attract international investors to UK

UK-based real estate giant M&G Real Estate has launched a new UK property strategy for international institutional investors.

The £580 mln (€683 mln) strategy is based on the company’s existing domestic investment procedures and will be managed by fund manager Dermot Kiernan.

Kiernan believes that UK commercial property has multiple attractions for long-term institutions seeking income-friendly lease structures.

‘The US dollar and the euro have both strengthened against sterling by 20%, while the Yuan and the Singapore dollar have appreciated by even greater amounts. UK property values are still about 30% below their peak, so the weaker pound offers a double discount,’ he said.

In a statement the company added that it believes that the improving outlook for UK economic growth, in addition to a significant decline in new construction over the past few years, will lead to good medium-term rental growth for investors.

M&G Real Estate was advised by Berwin Leighton Paisner LLP, Hogan Lovells International LLP and Arendt & Medernach.

Formerly known as Prupim, M&G Real Estate is the real estate investment management arm of M&G Investments.