M&G invests €239m in Spanish residential

M&G Real Estate, a division of M&G's private markets business, has invested €239 mln in Spain's residential rental market, adding nearly 1,000 new units to its portfolio.

Spain

The investment, on behalf of the M&G European Property Fund, includes a residential development in Barcelona and a Build-to-Rent (BTR) project in Madrid.
In Madrid, M&G is developing an affordable BTR project in the desirable Valdebebas residential district. 
The project benefits from proximity to major urban infrastructure, including the Ciudad de la Justicia, the IFEMA convention centre expansion and Hospital Enfermera Isabel Zendal, as well as excellent connectivity to major highways, the airport and the future extension of Metro Line 11. 
This project, expected to be completed by December 2026, will offer regulated rental prices below market rates to address affordability concerns.
Federico Bros, director of Investment and Asset Management for M&G Real Estate Iberia, said: “These acquisitions exemplify our ability to secure unique opportunities to access high-demand residential markets, from living in Barcelona to affordable BTR in Madrid. With these two highly sustainability-focused assets, we are targeting long‑term, inflation‑resilient income, while partnering with best‑in‑class developers and operators.”
Simon Ellis, fund manager of the M&G European Property Fund, added: “As the real estate cycle turns, Living is emerging as an important income engine for institutional portfolios, and we have significantly increased our exposure to this sector as a consequence. Southern Europe offers compelling fundamentals – undersupply and demographic growth - making Spain a core market for investors seeking durable returns and inflation protection.”
These new acquisitions expand M&G's residential portfolio in Spain and Portugal, adding to existing properties in Bilbao, Valencia, and Lisbon. This growth brings M&G's total managed living assets in the Iberian region to €510 mln.