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Long lease real estate

Long lease real estate has the potential to provide investors with secured, long-term, inflation-linked rental income, whilst retaining capital growth potential.

M&G currently invests €8.5bn* in long lease real estate. Our success in this asset class is a result of combining our real estate and fixed income expertise.

*As at 30 June 2018.

Where past performance is referenced, please note that this is not a guide to future performance.

The value of investments will fluctuate, which will cause prices to fall as well as rise and investors may not get back the original amount they invested.

Contact us to find out more about our long lease real estate opportunities

What is long lease real estate?

Investment in long lease real estate offers investors fixed income-like cash flows derived from long-term contractual rental payments. It also retains the security and capital growth potential from owning the underlying real estate.

The asset class of long lease real estate can therefore be viewed as a hybrid of fixed income and real estate.

Why invest in long lease real estate?

Long lease real estate investment provides long-dated, inflation-linked cash flows that are underpinned by owning real assets. Investors therefore benefit from:

  • secured fixed income-like cash flows
  • the potential for capital value growth over the long term

Is long lease real estate a growth or matching asset class?

In our view it has elements of both. Long lease real estate has the potential for closing funding gaps, whilst matching liabilities.

Long lease real estate can also offer good relative value versus all of its closest comparators: traditional real estate, corporate bonds and index-linked gilts.

Our experience

M&G has been investing in long lease real estate since 2000 and currently invests over €8.5bn* in this asset class. We benefit from the experience of our parent company, Prudential Plc, which has invested in real estate for over 140 years.

We also have significant resources, with an experienced team of real estate professionals and one of the largest, in-house credit teams in Europe.

Our extensive expertise and track record in both the real estate and fixed income asset classes have enabled us to successfully implement our long lease real estate product range.

*As at 30 June 2018.

Our product range

Please follow the links below for more information on M&G’s long lease real estate product range:

Meet the long lease real estate team

 

Ben Jones-89 x 102 
Director
Ben Jones
Peter Manners Smith-89 x 102 
Director
Peter Manners-Smith
Lee_McDowell-89 x 102 
Director
Lee McDowell
Johnstone_Holly_Web pic 
Associate Director
Holly Johnstone
Will Shadbolt-89 x 102 
Associate Director
Will Shadbolt
Mabel Chui 
Director
Mabel Chui
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