Pensioenfonds Metaal en Techniek, The Hague, and Pensioenfonds Metalektro, Groningen, Netherlands, jointly committed a total of €400 million ($428 million) to the M&G European Living Property Fund through their fiduciary manager MN.
The real estate fund will provide the Dutch pension funds with attractive risk-adjusted returns through investments in European student housing, single and multifamily housing and retirement homes, according to a news release Tuesday.
"By increasing exposure to residential real estate in Europe, we aim to secure long-term returns for our clients PMT and PME. The focus on sustainability and the fund manager's long track record played an important part in placing this newly committed capital," Joep Barten, portfolio manager-real estate at MN, said in the release.
PMT and PME spokeswomen could not immediately be reached to provide further details.
PMT has €80 billion in assets. PME has €61.7 billion in assets.