M&G Real Estate, part of asset manager M&G, has announced it will finance a private sector rental housing project worth €41.7 mln in Leiden, the Netherlands.
The deal was concluded on behalf of the M&G European Living Property strategy which was launched in January this year. It is the first time that money from this strategy has been deployed in the Netherlands.
Marcus Eilers, head of European residential at M&G Real Estate said: 'This is the sixth project we are adding to our pan-European portfolio. We have also taken the first step in this housing segment in the Randstad.'
The project by Amsterdam project developer Lingotto is dubbed More5 and will consist of 206 apartments and 178 m2 of commercial space.
Some 184 of the apartments to be built fall under the affordable category, with 150 of these intended for university employees. The project is located in the Bioscience Park and near the city centre.
Laurien van Wieringen, head of real estate investment and asset management at M&G in the Netherlands said: 'Over the past ten years, the number of residents in Leiden has increased by almost 5%, which has led to a shortage of around 10,000 homes. This project makes a small contribution to reducing the regional housing shortage.'
The apartment complex will be equipped with 240 solar panels for the WKO heat and cold storage system and will have parking for 527 bicycles.
The project is expected to be completed in the last quarter of 2025. The intention is for More5 to achieve a GPR score of at least 7.5 and to receive a BREEAM in use very good certificate or higher one year after completion, and all tenants will then benefit from the awarded energy labels A, A+ and A++.
Asset manager M&G has assets under management of €387.8 bn. Its property arm, M&G Real Estate, is one of the largest real estate investors in the world with €36 bn in assets under management.
M&G was assisted in the transaction by Savills.