Rental housing investor Greystar Real Estate Partners has announced its first German build to rent development investment with the acquisition of a 234-unit residential project in Hamburg.

Greystar said it has acquired the development as part of its develop-to-core venture with a global institutional investor to build a diversified, high-quality rental apartment portfolio in Germany and Austria.

As previously reported, Greystar intends to develop €1bn worth of multifamily rental houses in Germany and Austria with the unnamed global institutional investor.

Financial details of the forward purchase transaction with developer BPD were undisclosed.

Greystar said the forward purchase deal is the first major development project it has acquired in Germany and Austria and follows a purchase in Frankfurt and a development in Vienna.

Greystar entered the market in Germany and Austria in 2018 with the acquisition of District Living, a 110-metre high-rise in Vienna’s 22nd district. Greystar also owns and operates LY30 in Frankfurt, which was acquired in 2019 and comprises 182 rental flats.

Thomas Wünsche, senior director - Germany and Austria at Greystar Real Estate Partners, said: “The investment strategy for our German and Austrian develop-to-core venture, is to build a diversified portfolio of institutional-quality rental flats by focusing on multi-family properties of scale in key markets such as Berlin, Frankfurt, Hamburg, Munich, Cologne, Düsseldorf, Stuttgart and Vienna.

“We are implementing specific value creation strategies based on Greystar’s global planning and development experience to provide a unique rental experience to our residents and achieve above-average returns and yields for our investors.”

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