M&G European Property Fund grows core exposure (EU)
Wednesday 30 May 2012
The M&G European Property Fund has continued to deploy its assets in Europe with more than €100 million-worth of property acquisitions in response to investor demand for exposure to core, well-let property assets in the region. The Fund, which is co-managed by David Jackson and Rob Tidy of PRUPIM, has procured two shopping centers in Brussels and Thionville in northern France along with a hypermarket in Neuwied, Germany.
According to Rob Tidy, investors remain risk averse in the current economic environment and place particular value on funds with exposure to prime assets. He commented: "The purchase of these three northern European assets reflects institutional investors’ continuing preference for core European property over exposure to riskier assets and locations.
"Well-let properties in excellent locations in the stronger northern European markets help us to achieve our aim of delivering core levels of return with the added benefit of geographical diversification. In line with our acquisition strategy, we will continue to identify suitable defensive assets in France, Germany and Scandinavia, which can deliver value over the long term."
The acquisitions include:
• Galerie Toison D’Or, Brussels. The 14,487 m² fully-let prime retail shopping center in the heart of Brussels was purchased from ING Real Estate and the Gillion Family for €61 mln. CBRE advised the vendor. Cushman & Wakefield advised the fund.
• Toom Hypermarket, Neuwied, Germany. Fully let to Toom, a renowned German hypermarket brand, the 11,000 m² asset was purchased from Versorgungswerk, a German pension fund for €13.9 mln. Cushman & Wakefield advised the fund.
• La Cour des Capucins shopping center, Thionville, France. The 8,813 m² center was purchased for €31.2 mln. DTZ Asset Management advised the fund. The vendors, Altarea Cogedim, were advised by Easton Corporate Finance.
The M&G European Property Fund was launched in 2006, with a mandate to invest in a diversified portfolio of assets in mature European markets outside the UK. It has grown to around €800 mln. and in the last 12 months inflows have totaled more than €270 mln. from UK and European investors.