M&G Real Estate has acquired a 65% stake in BauMont Real Estate Capital, a European real estate fund manager specializing in value-add investment strategies in Western Europe, according to a news release.
BauMont’s team is led out of Paris and London, and has €1.5 billion ($1.6 billion) in assets under management.
BauMont will combine with M&G’s £40 billion global real estate business. M&G will move to expand beyond its core commercial, residential and debt strategies, and seek returns through active management of the full property cycle.
Separately, M&G’s With-Profits Fund, which invests and manages the long-term savings on behalf of 4.6 million U.K. policyholders, is investing €200 million in BauMont’s latest fund, which is focused on European value-add property in the U.K. and France.
“This new partnership is an opportunity to broaden the real estate strategies we offer at a time when the asset class is back in focus for global institutional clients who are considering increasing their allocations at this stage in the cycle,” said Tony Brown, global head of M&G Real Estate, in the news release.
M&G Real Estate is the 11th largest real estate manager globally of those headquartered outside of the U.S., with nine offices in Europe and four in Asia Pacific.
M&G Real Estate was advised by CBRE Investment Banking in its acquisition of BauMont.
