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Germany: M&G Real Estate has acquired a €56 million private rented sector development in Berlin through a forward funding agreement, with 145 homes due for completion by the end of 2027.
The investment was made on behalf of the €5.4 billion M&G European Property Fund and will increase the fund’s exposure to the living sector.
Located on the border of Berlin’s Pankow and Lichtenberg districts, the scheme is close to Prenzlauer Berg and Friedrichshain. Public transport connections will provide access to central Berlin, the city’s main railway station and Berlin Brandenburg Airport.
Quarterback Immobilien AG will develop the project. The German residential developer has completed more than 25,000 units since 1993.
The building is targeting BREEAM New Construction Excellent certification and an EPC A rating. Plans include heat pumps supported by district heating, smart metering technology, built-in kitchens, underfloor heating and floor-to-ceiling windows.
Thomas Kächele, head of Germany at M&G Real Estate, said: “This acquisition reflects our conviction in the long-term fundamentals of Berlin’s residential market, where population growth and limited housing supply continue to underpin the need for high-quality professionally managed rental accommodation.”
Kächele added that approximately 85 per cent of households in Berlin rent their homes, making the city one of Europe’s largest residential investment markets.
Simon Ellis, fund manager of the M&G European Property Fund, said: “Living sector assets continue to demonstrate strong long-term occupier fundamentals and remain one of our highest-conviction themes across Europe.”
The acquisition, alongside other transactions, will take residential assets towards 30 per cent of the fund’s portfolio.
M&G Real Estate manages approximately €40 billion of assets globally and forms part of M&G’s €96 billion private markets business.
Highlights
- M&G has committed €56 million to the Berlin PRS development
- The scheme will provide 145 rental homes by the end of 2027
- Quarterback Immobilien AG will develop the project
- The building is targeting BREEAM Excellent certification and an EPC A rating
- Residential assets are moving towards 30 per cent of the M&G European Property Fund portfolio
