M&G Real Estate鈥檚 European property fund has acquired a residential development in Germany via a 鈧�56m forward funding agreement with developer Quarterback Immobilien.
The scheme, located on the border of Berlin鈥檚 Pankow and Lichtenberg districts, will deliver 145 private-rented homes scheduled for completion by the end of 2027.
The transaction increases the 鈧�5.4bn M&G European Property Fund鈥檚 exposure to the European living sector towards its 30% target, the manager said.
Thomas K盲chele, head of Germany at M&G Real Estate, said: 鈥淭his acquisition reflects our conviction in the long-term fundamentals of Berlin鈥檚 residential market, where population growth and limited housing supply continue to underpin the need for high-quality, professionally-managed rental accommodation.
鈥淎pproximately 85% of households in Berlin rent their homes, making it one of the largest residential investment markets in Europe. The asset benefits from its highly attractive location as well as excellent connectivity, making it well positioned to meet the needs of today鈥檚 urban renters.鈥�
Simon Ellis, fund manager of the M&G European Property Fund, said: 鈥淟iving-sector assets continue to demonstrate strong long-term occupier fundamentals and remain one of our highest-conviction themes across Europe, with this asset alongside other transactions taking residential exposure towards 30% of the portfolio.
鈥淎s the fund approaches its 20-year anniversary, we continue to identify attractive opportunities to deploy institutional capital into high-quality housing in supply-constrained European cities, delivering resilient income for investors while making a meaningful contribution to the real economy.鈥�
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