London-based investment firm Matter Real Estate is ending 2024 on a positive note, exceeding growth projections in the UK, Denmark and Sweden and with strong asset performance.
In an interview with PropertyEU, CEO David Christie explained that Matter Real Estate has come a long way since making its first residential real estate investment in 2015, by acquiring a controlling interest in Placefirst, a small Manchester-based developer with only 50 homes.
‘This allowed us to observe how institutional investors were inefficiently trying to enter the UK residential market, focusing solely on large city-centre apartment blocks due to the scale of their capital,’ he noted.
Initial analysis of the UK rental market revealed that most renters lived in houses, not high-rise, amenity-rich apartments. ‘We recognised that affordable, rather than aspirational, housing was the key market segment. This shaped our investment strategy, differentiating us from other private equity funds that relied on external management for office and retail properties,’ he added.
Matter Real Estate has since expanded operations across the UK, Denmark, Sweden, Germany, and Ireland. ‘While each location maintains local teams and expertise, we leverage standardisation and knowledge-sharing across our network in construction, leasing, management, and ESG/social impact. This approach enables our local teams to deliver a product that caters to global institutional investors while preserving local brand recognition, exemplified by Placefirst, 15 Degree, and Velkomn. From an investor perspective, our approach simplifies access to the often-complex European residential market,’ Christie said.
Matter Real Estate maintains a conservative, low-leverage investment strategy. ‘Market conditions and the developmental nature of our business inherently limit our leverage needs. Also, smaller-scale investors often face less favourable debt pricing. However, we are seeing an improved debt market environment and increased lender interest due to our growing scale and reputation, potentially allowing for more aggressive, yet disciplined, future leveraging,’ he anticipated.
Looking ahead to 2025, Christie anticipates continued accelerated growth in Matter Real Estate’s existing markets in the UK, Germany, and Denmark. ‘We are currently reviewing several other European markets - the remaining Nordic countries, Benelux, and potentially Spain - to determine future expansion opportunities. However, our immediate focus remains on consolidating and deepening our presence within our current geographic footprint,’ he concluded.
