M&G Real Estate (M&G) has expanded its “Asia Living Property” strategy with the acquisition of Bowen Crescent, a newly completed build-to-rent development in Melbourne, for $158m.

The acquisition takes the strategy’s assets to around $500m and marks its first investment in Australia’s build-to-rent sector, broadening its exposure to residential opportunities across Asia Pacific. The portfolio now spans multi-family housing, purpose-built student accommodation, land lease communities and senior living according to a statement by the firm, which is part of the $110bn M&G Investments’ Private Markets business.

Located close to Melbourne’s central business district and major university precincts, Bowen Crescent comprises 215 professionally managed one, two and three bedroom rental apartments across a 17-storey development.

The acquisition builds on M&G’s existing develop-to-core partnership with Novus in Australia, combining M&G’s investment expertise with Novus’ development and operating capabilities to access purpose-built rental housing in one of the country’s most established residential rental markets.

Jing Dong (JD) Lai, chief executive officer and chief investment officer of M&G Real Estate Asia, said: “The living sector is one of the most compelling long-term investment opportunities across Asia Pacific, underpinned by population growth, urbanisation and changing lifestyle preferences. Australia stands out as a market where demand for professionally managed rental housing continues to grow, supported by strong demographic trends.”