M&G Investments today announces the first close of its latest vintage of Real Estate Debt Funds (“Funds”) including £350 million of capital from four clients. The capital will be deployed into real estate loans across Europe originated by M&G’s market leading Real Estate Finance team.
The latest funds have reached a first close with £200 million investment from LGPS Central Limited, £100 million from the Prudential With Profits Fund and £25 million from one of the UK’s largest insurers. M&G will be raising further capital for these funds and segregated mandates over the next 18 months from global institutional investors seeking potentially double-digit returns available from direct commercial real estate loans in Europe.
The €1.5 trillion real estate finance market has changed considerably in the past 15 years. It was once dominated by the banks and has seen increasing participation from alternative lenders who now represent around 39 percent of the outstanding debt in the UK and 10-15 percent in Continental Europe. The expectation is that alternative lenders will continue to play a greater role as regulatory drivers means that banks retreat from some parts of the lending markets.
Source: mandg.com on the 11 March 2025
https://www.mandg.com/news-and-media/press-releases/asset-management/2024/11-03-2024