Prime Highlights:
- M&G Investments is committing £1 billion to develop more than 3,000 rental homes in London and regional cities.
- The project aims to improve tenant experiences with high-quality amenities and shared spaces.
Key Facts:
- Both M&G and an Asian pension fund contributed £300 million in equity for the project.
- Once completed, the housing portfolio is expected to be worth over £1 billion.
Background:
M&G Investments will invest £1 billion in UK housing to build over 3,000 rental homes in London and other cities. The initiative is designed to tackle the country’s housing shortage while supporting the UK Government’s goal of delivering 1.5 million new homes during this parliament.
The developments will be funded over the next three years by M&G Real Estate on behalf of one of Asia’s leading pension funds, alongside M&G’s £130 billion With Profits Fund. The project is structured to use leverage in addition to equity contributions from both M&G and the Asian pension fund, which together invested £300 million. Once complete, the portfolio is expected to surpass a value of £1 billion.
M&G has emphasised that the new developments will not only increase the housing supply but also improve tenant experiences by offering high-quality amenities and thoughtfully designed shared spaces. The investment demonstrates the company’s commitment to channel international capital into the UK’s real estate sector, particularly in areas where high-quality housing is in short supply.
Martin Towns, global head of M&G Real Estate, said the project shows how the company brings international investment into UK housing, addressing the shortage of quality homes while providing long-term returns for pension savers both in the UK and abroad.
This move reinforces M&G’s strategy to generate sustainable, long-term returns while making a tangible contribution to solving one of the UK’s most pressing social challenges: the need for more affordable, high-quality housing.