M&G Investments plans to invest £1bn into UK multi-family housing to build over 3,000 rental homes in London and regional cities.
The aim is to address housing shortages and support the UK Government’s target of delivering 1.5 million new homes during this parliament.
M&G Real Estate will fund these developments over the next three years on behalf of one of Asia’s leading pension funds and M&G’s £130bn With Profits Fund.
These new developments are expected to improve tenant experiences through high-quality amenities and shared spaces.
Both M&G and an Asian pension fund contributed £300m in equity to the project, which will use leverage to accelerate development and increase the number of homes.
Once completed, the portfolio is expected to be worth over £1bn.
Martin Towns, global head of M&G Real Estate, said: “This is a powerful demonstration of our business model in action – mobilising international capital to invest into UK housing in a sector where there is a shortage of high quality homes.
“Through our investment into the real economy we can build more homes where they are most needed, whilst delivering resilient, long-term returns for pension savers in both the UK and internationally.”
