M&G Real Estate, a London-based real estate investor, has acquired two serviced apartment properties in Berlin and Bielefeld through a forward purchase. The transaction was made for the M&G European Property Fund and marks the fund's first strategic investment in the serviced apartments segment. The aggregate transaction volume for both properties amounts to 73.5 million EUR.
M&G Real Estate received legal advice from McDermott Will & Schulte. This acquisition underscores the fund's commitment to expanding its portfolio through targeted investments in specific real estate segments.
Details of the Acquired Properties
The properties, located in Berlin and Bielefeld, were developed by Livory, a German developer specialising in Build-to-Rent (BTR) and serviced apartments. Upon completion, both properties were leased to the sister company smartments for a period of 20 years. This long-term lease agreement from smartments secures stable income for the M&G European Property Fund.
Livory Group GmbH is a renowned real estate developer in Germany, with an annual development volume of over 200 million EUR and a track record of more than 2,000 developed units in the Build-to-Rent and serviced apartment sectors.
Background Information of the Parties Involved
M&G Real Estate is a global real estate investor headquartered in London. With approximately 200 employees across locations in Europe and Asia, the company offers integrated services in fund management, asset management, and property management. The current investment in serviced apartments reflects a diversification strategy within the fund's European real estate portfolio.
The decision to invest in the serviced apartment segment can be seen as a response to current market developments, which indicate sustained demand for flexible and high-quality housing solutions. This transaction solidifies M&G Real Estate's presence in the German market.
