M&G invest in MORE5 Build to Rent scheme

M&G Real Estate invests €41.7m in a new Dutch residential scheme to deliver the MORE5 Build to Rent development in Leiden.

The MORE5 Build to Rent development in Leiden | M&G Real Estate | BTR News
The MORE5 Build to Rent development in Leiden.

Part of M&G’s €86bn private markets’ business, M&G Real Estate announces that it has made a forward funding commitment to a €41.7m Build to Rent scheme – known as MORE5 – in Leiden, an academic and entrepreneurial hub in the Netherlands. The deal is on behalf of the M&G European Living Property Fund – launched in January this year – and marks the fund’s first investment in the Netherlands.

Developed by Amsterdam-based developer Lingotto, MORE5 will deliver 206 Build to Rent apartments and 178 sqm of commercial space. Out of the total housing units, 184 homes will provide affordable rents, with 150 of them designated to university staff. The development is expected to complete in Q4 2025.

“In the last decade, Leiden has experienced a close to 5% growth in population, resulting in shortage of around 10,000 homes. This project will contribute in a small way to alleviate the area’s housing undersupply, providing high-quality living solutions mainly targeting PhD students, researchers, guest lecturers, and other university staff.”

Laurien van Wieringen, Head of Real Estate Investment and Asset Management, M&G Real Estate in the Netherlands

The scheme will be equipped with a thermal energy storage system, served by 240 solar panels providing heating and cooling, and will offer 527 bike parking spaces. MORE5 is targeting a minimum GPR (Dutch sustainability score) score of ≥ 7.5, and aims to achieve the BREEAM-in use Very Good or better certificate one year after completion, and all units will benefit from energy labels A, A+ and A++.

Close to the city centre, MORE5 is situated in Leiden’s Bioscience Park; the largest pharmaceutical Life Sciences cluster in the Netherlands. It is home to 150 life science related companies, university faculties, labs and research institutes, and Leiden’s University Hospital.

“We are very pleased to add this high-quality development as our sixth investment to our Pan European portfolio, gaining access to such a prime residential market as the Randstad area, and to continue looking to deliver attractive, risk adjusted returns to institutional investors in the strategy.”

Marcus Eilers, Head of European Residential, M&G Real Estate

Across Europe, M&G Real Estate has offices in Amsterdam, Frankfurt, Luxembourg, Madrid, Milan, Paris and Stockholm. The company was advised by Savills in this transaction.