Greystar Real Estate Partners is planning to develop €1bn worth of multifamily rental houses in Germany and Austria with an unnamed global institutional investor.

Greystar said it has launched the develop-to-core venture to focus on funding purpose-built and designed multifamily rental housing.

The new venture will create a diversified portfolio of institutional-grade multifamily assets across cities such as Berlin, Frankfurt, Hamburg, Munich and Vienna. Projects will be forward fund, forward purchase or ground-up development.

Thomas Wünsche, Greystar’s Germany and Austria head, said: “There is a lack of purpose-built rental housing and institutional quality managed assets in Germany and Austria. We have an early mover advantage as one of the first developers of modern flexible housing solution in these markets.

“We know that people are renting for longer and the pandemic has accelerated trends towards working from home, so we are confident our highly amenitised, professionally managed product will prove popular as we expand across our target cities.”

Founded in 1993 and headquartered in Charleston, South Carolina, Greystar manages and operates over $200bn (€168bn) real estate in nearly 200 markets globally.

The company entered the market in Germany and Austria in 2018 with the acquisition of DC Tower III, a project currently under construction and will provide a mix of student, young professional and rental housing.

It also owns and operates LY30, a rental apartment in Frankfurt, which it acquired in 2019.

Mark Allnutt, a senior managing director – Europe, Greystar, said: “The significant supply and demand imbalance that exists across Europe is driven by secular declines in new housing deliveries and shifting preferences towards rental as people delay house purchases for longer.

“This venture aligns with our strategy in our other European markets to deliver purpose-built rental housing in city hubs with stable employment and long term persistent rental demand, such as London, Amsterdam and Paris.”

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