Global rental housing specialist Greystar Real Estate Partners has unveiled a new ‘develop-to-core’ venture with a global institutional investor focused on funding purpose-built multifamily rental housing across Germany and Austria, targeting a gross development value of €1 bn.
The new venture will create a diversified portfolio of institutional grade multifamily assets across cities such as Berlin, Frankfurt, Hamburg, Munich and Vienna.
The target will be high-quality developments of scale (+100 units) across a mix of urban locations including regeneration and placemaking opportunities. The projects are expected to be executed on a forward fund, forward purchase or ground-up development basis.
Thomas Wünsche, head of Germany and Austria, Greystar, 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.'
Greystar entered the market in Germany and Austria in 2018 with the acquisition of DC Tower III, a 110-metre high-rise building that will be located in the 22nd district of Vienna at the Danube waterfront.
The project is under construction and will provide a mix of student, young professional and rental housing. Greystar also owns and operates LY30 in Frankfurt, which it acquired in 2019 and comprises 182 rental apartments.
Mark Allnutt, 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.'
