M&G Real Estate Steps Up Resi Investment With Second Acquisition This Year
M&G Real Estate has acquired 67 social housing apartments in Blackrock, Dublin, for €31.3M, less than two months after making a PRS purchase in the Dublin residential market.
The deal, which was completed by the M&G European Secured Property Income Fund, offers investors long-dated, inflation-linked cashflows secured by local council-backed income, the company said.
Located close to the city centre and on the The Dart tram network, The Butter Yard is in the suburb of Blackrock and is let to Dun Laoghaire Rathdown County Council for social housing use on a 25-year term.
The purchase follows M&G’s €99.5M acquisition in February of Eglinton Place in Dublin, which will provide 148 private rented sector homes and is the latest international investment following deals by Abrdn and Hammerson with Allianz in recent months.
"Ireland is important to us because it's also in our core Europe 'bucket' where we have our highest-ranked locations," M&G Head of European Residential Real Estate Marcus Eilers told Bisnow in an exclusive interview at the time of that deal.
He said that with “extremely restricted supply across Ireland” the market was attractive to M&G Real Estate. “We will return to Ireland at some point, hopefully this year," he added.
That has proven sooner rather than later and the recently completed, 42K SF The Butter Yard development comprises two apartment blocks of 67 one- and two-bedroom homes.
Designed and built by Dublin-based developer Barina Property Group, The Butter Yard complies with the EU’s Energy Performance of Buildings Directive and has an Irish Building Energy Rating of A3 or better, aligning with M&G’s low carbon and energy-efficient housing acquisition mandate across Europe.
The scheme includes a green roof, EV charging points with heat pumps providing heating and hot water, plus a landscaped courtyard, a children’s play area and 83 bicycle spaces.
“This acquisition adds exposure to a well-performing sector in a growing European city, while increasing portfolio diversification. Dublin in particular has a strong demand for high-quality, sustainable housing alongside limited supply,” M&G European Secured Property Income Fund Manager Lee McDowell said.
“The long-term lease agreement with Dun Laoghaire Rathdown County Council follows our strategy of securing reliable, long-term cashflows, which grow in line with inflation,” he added.
The M&G European Secured Property Income Fund is valued at circa €800M and is invested across 10 continental European markets.
