M&G invests in Swedish Motala

M&G, through its long lease fund M&G European Secured Property Income Fund, has acquired a elderly care development in Swedish town Motala. The transaction means that M&G will finance the development of a 54-room elderly care home that upon completion will be let to the Muncipality of Motala on a 25-year inflation-indexed lease.

According to a press release from M&G, it is the second deal made be the fund in the Swedish care home segment.

“We are pleased to complete the Fund’s second deal in the Nordics with the same vendor, and also our second in the capacity constrained Swedish elderly care sector, which needs 700 new care homes by 2026 to cope with demand. The acquisition strengthens our position in the region and brings our total Nordics portfolio to €750 million across 17 assets”, Thorsten Slytå, Director Nordic Region at M&G Real Estate, comments.

Sverrir Thór