M&G RE plans to invest on build-to-rent

M&G RE plans to invest on build-to-rent

Federico Bros, in charge of Investments and Asset management for Spain and Portugal at M&G Real Estate, revealed that «we are monitoring build to rent operations in the country’s main cities. We are likely to start in Madrid», he advanced.

Given the prominence this alternative segment had during the pandemic, Federico Bros assumed he found a «very competitive setting», and explained that «investment is focusing on the logistic and housing rental segments and also where new capital is being invested. This makes it difficult to achieve the returns demanded by our clients», he admitted.

M&G should start investing in the segment after more than 5 years of activity on the Iberian market, where it has a portfolio estimated at 1 billion euro.

The amount the British management company will invest on the segment was not disclosed, but it is known that the average annual investment on the real estate market is around 200 million euro, an amount which, according to Federico Bros, is to be maintained.

Amongst the latest operations registered by Iberian Property is the acquisition of a Multi-storey Logistics Development in Seville’s Dos Hermanas Park and the Logistics Warehouse in Los Gavilanes in Madrid for around 32.5 million euro. Both operations were concluded in 2019.

Newspaper Expansión reported that last Summer Stoneweg sold M&G Skyline’s rental skyline which is being constructed in Madrid’s barrio Tetuán, for 125 million euro. This project should place on the rental market a total of 300 apartments.

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