MGT has established a strategic joint-venture with Lincoln Property Company to deliver this Millennial Cities strategy. The joint-venture combines the commercial and residential development experience and skills of Lincoln Property Company, one of the largest full-service real estate companies in the United States, with the pan-European investment experience and strategic focus of MGT. The partnership is called Lincoln MGT.
Developing and managing a portfolio of purpose-built rental residential
The JV’s strategic objective is to develop, and manage over the long-term, a portfolio of purpose-built rental residential assets in and around London and other key cities in Europe. Our strategy is research driven, specifically focusing on property opportunities arising in cities, which are most affected by the lifestyle choices of the millennial generation. The primary cities of focus for us are London and Berlin.
The joint-venture will undertake large-scale, residential-led mixed-use projects which combine both commercial and residential with public amenity. We will prioritise opportunities that have been granted outline planning consent, or similar.
The partnership has a skilled and well-resourced team to deliver on all aspects of the strategy from site identification, feasibility studies, entitlement, design, construction, leasing and operation to management and capital structuring in the longer term. The partners bring complementary skill sets to the joint-venture with MGT leading on acquisition and investment management, and Lincoln leading on development, construction, leasing and property management.
The millennial generation driving demand
By 2020, millennials will account for 50% of the European working population, making them the single most important economic group. The generation faces significant challenges in finding affordable places to live. Home ownership is beyond the reach of many, so renting offers a flexible, attractive alternative. Our research predicts that certain European city markets, which we have identified as ‘Millennial Cities’, will significantly outperform the wider market as hubs of innovation and creativity.
Our Millennial Cities strategy is underpinned by the thesis that lifestyle preferences of people born between 1980 and 2000 – the so-called “millennials” – will drive a long-term supply and demand imbalance in certain sectors within selected European cities. Hence, creating opportunity for income growth and capital appreciation.