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The latest mergers, acquisitions and other corporate actions in the wealth management sector.
M&G
M&G
Real Estate has acquired a 65 per cent stake in BauMont Real
Estate Capital Limited (BauMont) – a European real estate
fund manager specialising in value-add investment strategies in
Western Europe.
Established in 2017, BauMont’s 18-strong team is led from Paris
and London with €1.5 billion ($1.63 billion) of assets
under management and a management team with an investment
track record of more than 20 years in European value add real
estate.
The acquisition is part of M&G’s strategy to selectively add
investment capabilities in areas where active management has
the potential to deliver alpha to clients over medium to
long-term investment horizons.
BauMont will join forces with M&G’s £40 billion (£52 billion)
nine global real estate business, enabling M&G to expand its
client proposition beyond its established core commercial,
residential and debt strategies – and the ability to invest
throughout the full property cycle, unlocking potential returns
through active management. In turn, BauMont will benefit
from M&G’s significant pan-European real estate platform,
alongside its global distribution capabilities which have been
expanded in recent times to meet the growing needs of
institutional investors in Europe and Asia.
Separately, M&G’s With-Profits Fund – which invests and
manages the long-term savings on behalf of 4.6 million UK
policyholders – is investing €200 million 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.
Investor intention surveys have shown that European and Asian
investors see the market potential of value-add real estate
strategies, especially at this point in the cycle. As
urbanisation and economic growth continue to drive demand
for high-quality real estate, value-add is poised to play a
crucial role in the real estate allocations of
global institutional investors.
“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,” Robert Balick, managing partner
at BauMont, said.
M&G Real Estate was advised by CBRE Investment Banking.
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