M&G Real Estate


M&G Real Estate is the real estate fund management arm of M&G and is one of the top 25 real estate fund managers in the world by assets under management, with over £25 billion invested in a broad spread of properties across Europe, North America and the Asia Pacific region (as of 30 June 2016). M&G Real Estate has a sector leading approach to responsible property management, and is committed to assessing and improving the sustainability performance of funds under management. M&G is the investment arm of Prudential Plc in the UK, Europe and Asia.

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12/03/2021 06:55

The Government’s housing agency, Homes England, has agreed to a £10 million investment with M&G Investments to support the launch of its new Shared Ownership Fund.

The recoverable investment from Homes England will help accelerate the delivery of 2,000 affordable homes through M&G’s partnership with The Hyde Group. The partnership will provide Hyde with the capital to grow its development ambitions and build additional homes in the areas it serves.

The fund has so far attracted £215m of initial investment from two local authority pensions schemes, Hyde and two M&G client funds. The fund forms part of M&G’s established residential platform, alongside the £1 bn UK Residential Property Fund established in 2013.

Homes England is keen to support the growth and evolution of housing in institutional portfolios. This is the second time that the government’s housing agency has supported M&G, after it provided funding for the construction of over 500 private rental homes, which were subsequently acquired by M&G’s UK Residential Property Fund in 2013. The establishment of funds such as the M&G Shared Ownership Fund provide institutional investors with the structures they need to invest in affordable housing.

Gordon More, Interim Chief Executive at Homes England, commented:
“Securing new institutional capital to increase the delivery of new affordable homes is a priority for Homes England. Today’s investment is a signal to both domestic and international institutional capital that the government supports sustainable long-term investment in affordable housing to meet the needs of communities across the country.

“M&G has been innovative and successful investing in both market rent and affordable housing. We welcome the opportunity to work with M&G again and to support our Strategic Partner, Hyde. We look forward to seeing the fund grow and provide access to high quality new homes.”

Alex Greaves, Head of Residential Investment at M&G, added: “Well managed shared ownership is a brilliant first step onto the housing ladder for aspirational homeowners. As trusted investors with access to deep pools of client capital, we are fully committed to innovating and improving standards – adding scale and efficiency to the Fund – as we have done in the private rented sector.

“Working in partnership with Homes England is a great example of how the private and public sector can combine forces to make a positive impact on this under-served sector.”

12/03/2021 06:53

M&G will invest £500 million in the Shared Ownership sector to create more than 2000 new, sustainably designed and affordable homes.

The sum will be invested over the next 18-24 months via the M&G Shared Ownership Fund, which has agreed a long term, strategic partnership with Hyde Housing to create 2000 homes in London and Kent - in turn enabling Hyde to recycle capital into other affordable housing initiatives. Investors in the fund will gain index-linked rental income and house price exposure.

The fund will operate through a For-Profit Registered Provider regulated by the Regulator of Social Housing, drawing on its wealth of expertise in the Private Rented Sector to invest in the construction of high-quality homes with design features specifically aimed to reduce maintenance costs for occupiers.

Jonathan Daniels, Chief Investment Officer, M&G plc, commented: “This is a great example of how M&G is channelling institutional capital – on behalf of pension savers everywhere – into sustainable investments which will make a positive difference to the lives of thousands of more people who need good quality, affordable homes.”