M&G Real Estate has bought a 65 per cent stake in BauMont Real Estate.
M&G said it will enable it to invest throughout the whole property cycle.
Tony Brown, global head of M&G Real Estate, said: “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.
“Throughout our extensive history of real estate investing, we have continued to strive for excellence and can now
provide clients with a compelling proposition throughout the real estate cycle - and across the capital stack."
BauMont was set up in 2017 and specialises in value-add investment strategies in Western Europe. The firm's 18-strong team is based in Paris and London with €1.5bn (£1.26bn) of assets under management.
It will join forces with M&G’s £40bn global real estate business, and M&G said it will mean it can expand its proposition beyond core commercial, residential and debt strategies and the ability to invest throughout the full property cycle.
Robert Balick, managing partner at BauMont, added: “European real estate markets are adjusting to the higher rate environment and are entering a new cycle of growth where demand is focused on a limited supply of high-quality assets.
"Value-add strategies can take advantage of re-set entry pricing, whilst actively repositioning assets to meet the needs of modern occupiers."
M&G also revealed its with-profits fund is investing €200mn in BauMont’s latest fund and is seeking to secure higher returning
opportunities in European value-add property in the UK and France for its wider £13 billion real estate allocation.
tara.o'connor@ft.com
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