M&G Investments is a highly innovative asset manager investing €336bn across fixed income, equity, real estate and multi-asset strategies, and drawing on over 80 years’ experience. Our property fund management arm, M&G Real Estate, is a specialist investor across all major property sectors. Pension funds and other institutional investors value our strong track record and focus on maximising returns and the generation of strong income streams. We manage over €30bn of direct real estate across the UK, continental Europe, North America and Asia, making us one of the top 30 property fund managers in the world (according to PFR/IREI 2017 rankings). We offer institutional investors access to UK, European and Asian property through both pooled vehicles and segregated mandates. We also offer senior and mezzanine mortgage debt in the UK and Western Europe, either standalone or together, making us one of the few asset managers to offer a ‘one-stop’ solution to borrowers. Our investment decisions are informed by proprietary forecasts and market insight from a strong research team, while our sector specialists add value through active management and close relationships with occupiers. We are committed to sustainable property management through a dedicated Responsible Property Investment (RPI) team, which plays an active role in the investment and asset management process. The team’s sector leading approach enables us to manage and respond to the growing range of environmental and social issues that can impact property values, and therefore helps us to protect and enhance fund and asset performance for our clients.
The value of investments will fluctuate, which will cause prices to fall as well as rise and investors may not get back the original amount they invested.
*As at 31 December 2017
For Investment Professionals only.
These guides reflect M&G’s present opinions reflecting current market conditions. They are subject to change without notice and involve a number of assumptions which may not prove valid. Past performance is not a guide to future performance The distribution of these guides does not constitute an offer or solicitation. They have been written for informational and educational purposes only and should not be considered as investment advice or as a recommendation of any particular security, strategy or investment product. Information given in these documents has been obtained from, or based upon, sources believed by us to be reliable and accurate although M&G does not accept liability for the accuracy of the contents. M&G Investments is a business name of M&G Investment Management Limited and is used by other companies within the Prudential Group. M&G Investment Management Limited is registered in England and Wales under number 936683 with its registered office at Laurence Pountney Hill, London EC4R 0HH. M&G Investment Management Limited is authorised and regulated by the Financial Conduct Authority.
Investment principles & strategy
Real estate-derived vehicles can offer institutional investors a diverse range of investment opportunities. We offer access to UK, European and Asian property through both pooled vehicles and segregated mandates, investing across a wide range of industry sectors, including offices, retail, industrial, residential, student accommodation and hotels. The deep experience and local knowledge of our investment markets and extensive asset management expertise helps us to identify and exploit market inefficiencies quickly, giving our clients access to a broad range of investment opportunities. We believe we offer unrivalled insight into the property market through in-house research and proprietary valuation models. Our objective is to deliver superior, sustainable and consistent investment returns to our clients. We achieve this through:
• Adding value through property selection combined with pro-active asset management, deploying effective and creative leasing and development strategies.
• Focusing on income as the primary determinant of long-term performance and paying particular attention to meeting the occupational needs of our tenants.
• Driving innovation and taking a client-driven, needs-based approach to originating new investment strategies and creative deal making. We provide commercial mortgages from 0–80% loan-to-value on income producing properties in Western Europe and are one of the few asset managers to provide senior and mezzanine mortgage debt to borrowers seeking higher leverage. Investing in real estate debt with M&G provides a number of competitive advantages:
• Extensive origination platform – our ability to structure and originate loans allows investors to share in upfront fees received from borrowers, providing attractive economics compared to purchasing loans in the secondary market.
• Ability to fund large transactions – we are one of few investors able to write large size tickets (up to £400m) for single or portfolio transactions, reducing execution/syndication risk for borrowers.
• Situational flexibility – capability to invest in various transactions, including refinancing, secondary purchases, primary acquisitions and loan-on-loan, are factors that underpin our success.
The services and products provided by M&G Investment Management Limited are available only to investors who come within the category of the Professional Client as defined in the Financial Conduct Authority’s Handbook. They are not available to individual investors, who should not rely on this communication. Information given in this document has been obtained from, or based upon, sources believed by us to be reliable and accurate although M&G does not accept liability for the accuracy of the contents. M&G does not offer investment advice or make recommendations regarding investments. Opinions are subject to change without notice.
M&G Investments are business names of M&G Investment Management Limited and are used by other companies within the Prudential Group. M&G Investment Management Limited is registered in England and Wales under number 936683 with its registered office at Laurence Pountney Hill, London EC4R 0HH. M&G Investment Management Limited is authorised and regulated by the Financial Conduct Authority.
News from IPE Real Assets
Manager invests for core Asia real estate investment strategy
Investment manager buys Casey’s Centre from Scentre Group
Three-year-old complex in centre of Ulsan City bought for core strategy
Greenfields to build 850 homes for Essex following funding deal
Manager invests in core Asia strategy
White Papers / Research from M&G Investments (Real Estate - Homepage)
Any form of uncertainty is disruptive. The hung parliament result of the June general election, with no party obtaining a majority, created renewed doubt at a time when the electorate needed strong leadership and direction to navigate the complicated process of Brexit.
With the Brexit referendum now months behind us, uncertainty looks set to shape the investment agenda for some time to come.
Real estate has earned itself a firm place in institutional portfolios, with worldwide investment in property reaching a record $13.6 trillion. However, one key difference remains between investor attitude to real estate and to other asset classes.
Analysis from IPE Real Assets
The infrastructure fund management industry is growing. We talk to the three largest players
Investors are moving up the risk curve to take on more value-added exposure. But some argue that this is mitigating risk instead. Maha Khan Phillips reports
Can continental Europe match the UK’s £25bn long-lease property fund market? A number of fund managers are betting on it
The concept of investing in core assets in Asia-Pacific is gaining traction, although so far much of the focus has been on Australia, writes Florence Chong
Regional cities, often in the shadow of London, have been pushing hard to attract and expand investment since the Brexit vote. Mark Faithfull reports