M&G Real Estate has acquired a 65% stake in European value-add investment fund BauMont, giving the £40bn company control over a further £1.3bn of assets.
M&G’s With-Profits Fund, which manages the savings of 4.6m UK policyholders, is separately investing £168.2m in BauMont’s latest fund as the company seeks higher returns through European value-add for its wider £13bn real estate allocation.
Tony Brown, global head of M&G Real Estate, said: “This new partnership is an opportunity to broaden the real estate strategies we offer at a time when the asset class is back in focus for global institutional clients who are considering increasing their allocations at this stage in the cycle.”
He added: “Throughout our extensive history of real estate investing, we have continued to strive for excellence and can now provide clients with a compelling proposition throughout the real estate cycle – and across the capital stack. We look forward to a long and successful partnership with BauMont.”
Established in 2017, BauMont is based in Paris and London, where its team of 18 oversees the €1.5bn (£1.3bn) of assets the company manages across Western Europe.
Robert Balick, managing partner at BauMont, said: “European real estate markets are adjusting to the higher rate environment and are entering a new cycle of growth where demand is focused on a limited supply of high-quality assets. Value-add strategies can take advantage of reset entry pricing, whilst actively repositioning assets to meet the needs of modern occupiers.”
M&G Real Estate was advised by CBRE Investment Banking.
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