Greykite has joined forces with Arax Properties to create Baunest, a €500m residential platform targeting apartment buildings in Germany.
The joint venture has launched with the acquisition of a 1,600-apartment portfolio, with units in Greater Dusseldorf, Dortmund and Frankfurt, on behalf of Greykite’s European Real Estate Fund I. The price was not disclosed.
Greykite said the portfolio will seed Baunest, its new German residential platform, which it said has a mandate “to deliver high-quality, accessible rental homes while maintaining tenant affordability”, over the next 12 to 18 months.
The 134-asset portfolio comprises 110,000sqm and is 98% occupied, “providing stable in-place income and significant potential for value creation through targeted modernisation initiatives”, Greykite said.
Michael Abel, founder and CEO of Greykite, said: “This acquisition marks a compelling entry point for Baunest and reflects our conviction in the resilience and long-term fundamentals of the German residential sector.
“Structural demand, favourable affordability and improving market conditions continue to create attractive opportunities for institutional capital. Baunest comes into the portfolio as an exciting ninth investment theme for the fund, complementing our existing collection of differentiated investment platforms across the European industrial, living and digital sectors.”
Dan Valenzano, senior partner of Greykite, added: “We are pleased to be launching Baunest with the acquisition of this high-quality portfolio in key Western German markets. In addition to the diversified exposure and robust income profile, this portfolio presents a number of clear and actionable value-creation opportunities that we look forward to unlocking together with our partner Arax.”
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