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02 November 2020

M&G European Property Fund continues residential push with €62 million Italian student housing deal

2020
  • First student accommodation deal in Continental Europe
  • Further deals sought in France, Italy, The Netherlands and Nordic regions

LONDON, MILAN, 2 NOVEMBER, 2020: M&G Real Estate is to finance the development of a 513-bed purpose-built student accommodation development in central Bologna, Italy, for €62.1 million. The funding has been agreed on behalf of the €4 billion M&G European Property Fund, managed by David Jackson and Simon Ellis, as part of a strategy to broaden its residential exposure in Continental Europe.

Alongside acquisitions of a French senior housing asset and a Dutch private rented sector scheme last year, this is the Fund’s third transaction which combines resource from its M&G Real Estate’s European platform with its market leading residential business under the leadership of Alex Greaves.

The 15-storey scheme, which is being developed by Stonehill Group, will be ready for occupation by students in summer 2022. Located in the ‘Little Bologna’ district, which is popular for its bars, cafes and art scene, it is a 20-minute walk away from the University of Bologna.

The asset’s sustainability aspects have student health and wellbeing at the heart of the design strategy. Living accommodation, study areas and private dining rooms will be powered by air source heat pumps and intelligent technology-led energy saving systems and the asset’s green credentials are strengthened by 294 bicycle spaces, 18 electric scooter spaces and car charging points. Students will be able to enjoy panoramic views from the building’s sky lounge, as well as a landscaped courtyard, gym, yoga studio, cinema and gaming pods.

David Jackson, manager of the M&G European Property Fund, comments: “This acquisition will increase the Fund’s exposure to the rapidly growing institutional residential markets across Europe, providing strong diversification and rental growth potential. We particularly like the opportunities we are seeing in France, Italy, The Netherlands and the Nordics and are actively looking to increase our exposure in those markets.

“The continued emergence of the global middle class will accelerate the long term growth in overseas demand for higher education, with an increasing focus on purpose-built, safe, and well managed student accommodation schemes such as this. Despite being one of the world’s oldest and most prestigious universities - and a popular destination for both domestic and international students - Bologna suffers from a chronic lack of suitable student accommodation, and we see this as a great opportunity to deliver high quality product to address this.”

Alex Greaves, Head of Residential Investment, M&G Real Estate, adds: “Residential accommodation is a consumer product, which requires tailoring apartments, homes and rooms to their target demographic and geography in a sustainable way, which is what we have been doing in the UK since 2013.

“Combining the knowledge and experience of our European team with our expertise of residential investment in the UK demonstrates that not only can we create increased capacity to identify and structure further deals, but we can provide clients with access to quality real estate with long term value across the spectrum, from student accommodation to senior living.”

Media enquiries

Rebecca Talbot

Media Relations

Notes to editors

M&G Investments is part of M&G plc, a savings and investment business which was formed in 2017 through the merger of Prudential plc’s UK and Europe savings and insurance operation and M&G, its wholly owned international investment manager.

M&G plc listed as an independent company on the London Stock Exchange in October 2019 and has £339 billion of assets under management (as at 30 June 2020). M&G plc has over 5 million customers in the UK, Europe, the Americas and Asia, including individual savers and investors, life insurance policy holders and pension scheme members.

For nearly nine decades M&G Investments has been helping its customers to prosper by putting investments to work, which in turn creates jobs, homes and vital infrastructure in the real economy. Its investment solutions span equities, fixed income, multi asset, cash, private debt, infrastructure and real estate.

M&G recognises the importance of responsible investing and is a signatory to the United Nations Principles for Responsible Investment (UNPRI) and is a member of the Climate Bonds Initiative Partners Programme.

Its £33.7 billion property arm (as at 30 June 2020 including cash), M&G Real Estate, is a leading financial solutions provider for global real estate investors, has a sector leading approach to responsible property management and is committed to continuously improving the sustainability performance of its funds.

This financial promotion is issued by M&G Investment Management Limited (unless stated otherwise), registered in England and Wales under number 936683, registered office 10 Fenchurch Avenue, London EC3M 5AG. M&G Investment Management Limited is authorised and regulated by the Financial Conduct Authority. M&G Real Estate Limited is registered in England and Wales under number 3852763 and is not authorised or regulated by the Financial Conduct Authority. M&G Real Estate Limited forms part of the M&G Group of companies.
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M&G plc, incorporated and registered in England and Wales. Registered office: 10 Fenchurch Avenue, London EC3M 5AG. Registered number 11444019. M&G plc is a holding company, some of whose subsidiaries are authorised and regulated, as applicable, by the Prudential Regulation Authority and the Financial Conduct Authority.

M&G plc is a company incorporated and with its principal place of business in England, and its affiliated companies constitute a leading savings and investments business. M&G plc is the direct parent company of The Prudential Assurance Company Limited. The Prudential Assurance Company Limited is not affiliated in any manner with Prudential Financial, Inc, a company whose principal place of business is in the United States of America or Prudential plc, an international group incorporated in England and Wales.

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M&G plc, incorporated and registered in England and Wales. Registered office: 10 Fenchurch Avenue, London EC3M 5AG. Registered number 11444019. M&G plc is a holding company, some of whose subsidiaries are authorised and regulated, as applicable, by the Prudential Regulation Authority and the Financial Conduct Authority.

M&G plc is a company incorporated and with its principal place of business in England, and its affiliated companies constitute a leading savings and investments business. M&G plc is the direct parent company of The Prudential Assurance Company Limited. The Prudential Assurance Company Limited is not affiliated in any manner with Prudential Financial, Inc, a company whose principal place of business is in the United States of America or Prudential plc, an international group incorporated in England and Wales.

M&G plc は、イングランド及びウェールズで設立・登録。本社登録地は10 Fenchurch Avenue, London EC3M 5AG。登録番号11444019。M&G plcは持ち株会社で、その子会社の一部はPRA(健全性監督機構)及びFCA(金融行為規制機構) に認可され、それらの規制対象となっています。

M&G plc は、イングランドを登録地、及び主たる事業領域とする会社で、その関連会社は有数の貯蓄・投資機関として基盤を確立しています。M&G plcは、Prudential Assurance Company Limited(プルデンシャル・アシュアランス・カンパニー・リミテッド)の直接親会社です。なお、Prudential Assurance Company Limitedは、アメリカ合衆国を主たる事業領域とするPrudential Financial, Inc.(プルデンシャル・ファイナンシャルInc.)またはイングランド及びウェールズで設立された国際グループ企業であるPrudential plc(プルデンシャル・ピーエルシー)とは一切関係がありません。

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M&G plc, incorporated and registered in England and Wales. Registered office: 10 Fenchurch Avenue, London EC3M 5AG. Registered number 11444019. M&G plc is a holding company, some of whose subsidiaries are authorised and regulated, as applicable, by the Prudential Regulation Authority and the Financial Conduct Authority.

M&G plc is a company incorporated and with its principal place of business in England, and its affiliated companies constitute a leading savings and investments business. M&G plc is the direct parent company of The Prudential Assurance Company Limited. The Prudential Assurance Company Limited is not affiliated in any manner with Prudential Financial, Inc, a company whose principal place of business is in the United States of America or Prudential plc, an international group incorporated in England and Wales.