BauMont Real Estate Capital, the value-add fund manager owned by M&G Real Estate, has entered the German market by acquiring a €70m residential asset in Munich alongside local operating partner Reneo.
The deal represents marks the first transaction under a strategic partnership targeting more than €200m in German residential investments over the next 12 months.
The asset, located in Munich’s Obersendling district, will undergo a brown-to-green refurbishment.
Ibrahim Awan, investment director for Germany at BauMont Real Estate, said: “This acquisition marks BauMont’s entry into the German market and reflects the opportunity we see to invest in well-located residential assets where we can improve energy efficiency, create new homes and deliver value for our clients.
“Germany has one of Europe’s most undersupplied housing markets, alongside a large stock of older buildings that need investment. By partnering with Reneo, we are combining BauMont’s investment expertise with a specialist platform that can identify and deliver these opportunities at scale.”
Alexander Graubner-Müller, founder and co-CEO of Reneo, said: “We are delighted to partner with BauMont. The Munich acquisition shows how institutional capital can efficiently fund projects combining financial performance with measurable environmental impact.
“Together, we aim to unlock underutilised assets and create much-needed housing.”
Lambros Reppas, managing director at Reneo, said: “The Munich investment exemplifies what we want to scale – identifying existing properties with substantial energy and structural potential and combining institutional capital with our operational execution.
“Upgrading over 200 units from energy class H to A and adding over 30 new apartments unites climate impact with a clear economic rationale – exactly what makes our model attractive to institutional investors.”
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