M&G Real Estate completes first close of capital raising for new value add fund

Location: London

Date: 19 February 2018

Despite the uncertainty surrounding the outcome of Brexit, the UK’s economic and market fundamentals remain robust.

M&G Real Estate has completed an initial close of its first value add fund – the M&G UK Enhanced Value Fund (UKEV) with investor commitments totalling £125 million. Managed by Paul Crosbie, UKEV is a seven-year, close-ended fund aimed at institutional investors in the UK, Europe, Asia Pacific and Canada. Initial funding includes a significant commitment from an Asian investor and a total of £500 million is expected to be fully invested by 2021.

Investing in core, supply-constrained locations such as London, the South East and the big six UK office markets, UKEV will target mispriced assets valued at between £15-75 million, taking advantage of the risk aversion created by current political uncertainty. Value will be added by repositioning and redeveloping assets and by exercising change of use and lease enhancement methods.

Fund Manager Paul Crosbie, explains: “Despite the uncertainty surrounding the outcome of Brexit, the UK’s economic and market fundamentals remain robust. UK commercial real estate continues to benefit from significant macro trends such as e-commerce and urbanisation, which are driving tenant demand. Whilst the supply of quality space remains severely limited, we believe this creates an exciting window of opportunity to refurbish and reposition assets.

"We are excited by the commitment already shown by investors and look forward to drawing on our deep pool of knowledge and expertise within the UK to provide returns with the exciting pipeline that we have for this strategy".

Alex Jeffrey, Chief Executive, M&G Real Estate, adds: “With our market-wide credentials and expertise, we are well positioned to capitalise on long term investment opportunities available across the UK. To exceed our target first close in such a short space of time is credit to the team.

“We remain committed to growing our range of real estate products and solutions to meet the needs of investors.”

Notes to Editors

About M&G Real Estate

M&G Real Estate is the real estate fund management arm of M&G and is a leading global real estate investor with over £30 billion (including cash) invested in a broad spread of properties across Europe, North America and the Asia Pacific region (as of 30 September 2017). M&G Real Estate has a sector leading approach to responsible property management, and is committed to assessing and improving the sustainability performance of funds under management.

M&G is the investment arm of Prudential Plc in the UK, Europe and Asia. For more information please visit http://www.mandg.com/realestateOpens in a new window

About M&G

M&G is a leading international asset manager with a long-term, active approach to investing. The firm has been helping people to prosper by putting their money to work for more than 85 years. M&G’s customers include private investors, members of pension schemes and life insurance policyholders. Responding to the ever changing financial landscape, the firm has developed a wide range of investment solutions, across equities, fixed income, real estate, multi asset and infrastructure. At 30 September 2017 M&G manages over £285 billion in assets for its customers.

Headquartered in London, M&G employs over 2,000 people worldwide in 16 countries, managing assets in Europe, Asia and the US. M&G is the asset management arm of Prudential Plc in the UK and Europe.

As a steward of clients’ assets M&G recognises the importance of responsible investing with the analysis of environmental, social and governance (ESG) factors core to the business. M&G is a signatory to the United Nations Principles for Responsible Investment (UNPRI) and is a member of the Climate Bonds Initiative Partners Program, which is dedicated to achieving the long-term goal of building climate resilient economies. M&G’s £30 billion real estate business arm has a sector leading approach to responsible property management, and is committed to assessing and improving the sustainability performance of its funds.

This press release reflects the authors’ present opinions reflecting current market conditions; are subject to change without notice; and involve a number of assumptions which may not prove valid. It has been written for informational purposes only and should not be considered as investment advice or as a recommendation of any particular security, strategy or investment product. Past performance is not a guide to future performance.

The services and products provided by M&G Alternatives Investment Management Limited are available only to investors who come within the category of the Professional Client as defined in the Financial Conduct Authority’s Handbook. They are not available to individual investors, who should not rely on this communication. Information given in this document has been obtained from, or based upon, sources believed by us to be reliable and accurate although M&G does not accept liability for the accuracy of the contents.

M&G Investments is a business name of M&G Investment Management Limited and is used by other companies within the Prudential Group. M&G Investment Management Limited is registered in England and Wales under number 936683 with its registered office at Laurence Pountney Hill, London EC4R 0HH. M&G Investment Management Limited is authorised and regulated by the Financial Conduct Authority.

M&G Real Estate is a business name of M&G Investment Management Limited and is used by other companies within the Prudential Group.  M&G Investment Management Limited, M&G Alternatives Investment Management Limited and M&G Real Estate Limited are registered in England and Wales under numbers 936683, 2059989 and 3852763 respectively with their registered office at Laurence Pountney Hill, London EC4R OHH. M&G Investment Management Limited and M&G Alternatives Investment Management Limited are authorised and regulated by the Financial Conduct Authority.