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Why us?
Long lease real estate represents a defensive investment that blends traditional fixed income and real estate characteristics. It provides long-dated, inflation-linked income from high quality investment grade tenants, secured by prime UK real estate, further strengthening cash flows. The universe of long lease real estate assets comprises investment structures such as sale and leasebacks, ground rent transactions and income strips. All transaction types give investors the benefit of long dated lease contracts, with quarterly rental payments and contracted, inflation-linked uplifts.
Long lease real estate can offer diversification benefits versus equities, typically offering similar return potential but with less volatility. The risk profile can also be considered to be lower than traditional real estate, with an illiquidity premium over corporate bonds demonstrating relative value.
Our capabilities
EU long lease
EU long lease real estate typically comprises high-quality assets let on longterm, often inflation-linked leases to financially robust tenants, including listed companies, universities and local authorities. Investments are frequently structured through sale-and-leaseback transactions, enabling occupiers to release capital while retaining operational control of business-critical properties. Ground rent investments can also form part of the opportunity set, providing exposure to ultra-long-dated income streams.
The long-dated and often inflation-linked nature of these leases can provide secure and predictable cashflows, alongside the potential for capital appreciation. These characteristics can make EU long lease real estate well suited to the long-term objectives of institutional investors.
M&G's long-term, relative value-driven investment approach focuses on business-critical assets in sectors supported by positive structural trends. Drawing on more than two decades of experience and combining real estate and fixed income expertise, we have built a diversified portfolio of high-quality investments with the aim of delivering attractive risk-adjusted returns over the long term.
Please note that not all mentioned strategies may be available or registered for sale in all jurisdictions.
The views expressed on this webpage should not be taken as a recommendation, advice or forecast. The value of investments will fluctuate, which will cause prices to fall as well as rise and you may not get back the original amount you invested. Past performance is not a guide to future performance.
In the UK, the United States, Canada and Australia: M&G Investment Management Limited, registered in England and Wales under number 936683, registered office 10 Fenchurch Avenue, London EC3M 5AG. M&G Investment Management Limited is authorised and regulated by the Financial Conduct Authority. In Hong Kong and Korea: M&G Investments (Hong Kong) Limited. Office: Unit 1002, LHT Tower, 31 Queen’s Road Central, Hong Kong; in Singapore by M&G Investments (Singapore) Pte. Ltd. (UEN 201131425R), regulated by the Monetary Authority of Singapore; in Taiwan: independently operated by M&G Investments (Taiwan) Limited ,regulated by Financial Supervisory Commission of Taiwan, R.O.C. (113-gingwantougu-009). Address: Rm B1, 33F., Taipei 101 Tower, No. 7, Sec. 5, Xinyi Rd., Xinyi Dist., Taipei, 110, Taiwan. Tel: +886-02-81010600; in Japan: M&G Investments Japan Co., Ltd. Investment Management Business Operator, Investment Advisory and Agency Business Operator, Type II Financial Instruments Business Operator Director-General of the Kanto Local Finance Bureau (Kinsho) No. 2942. Membership to Associations: Japan Investment Advisers Association, Type II Financial Instruments Firms Association; elsewhere: M&G Luxembourg S.A. Registered Office: 16, boulevard Royal, L-2449, Luxembourg.