London-based investment firm Matter Real Estate and Berlin-based project developer 15 Degree are joining forces to invest approximately €250 mln in the Berlin residential market.
Together, they plan to create a joint venture with Matter holding a majority stake in 15 Degree. The partnership will focus on new, sustainable construction projects and acquiring existing properties to build a substantial residential portfolio in the German capital.
The business model centers on the user-centric development of sustainable neighbourhoods and residential buildings. The company is developing 200 apartments across two Berlin locations, with 20-30% designated rent-controlled units. Both projects meet the KfW40 and QNG standards.
In addition to purchasing and developing housing projects, 15 Degree aims to manage the properties.
The Berlin company, led by managing directors Maximilian Deilmann and Paul Gebhardt, is headquartered in the Mitte district.
Maximilian Deilmann, managing director and founding partner of 15 Degree, commented: ‘We are one of the few well-capitalized and unencumbered structures in the current market environment that can make purchases quickly and efficiently – entirely with equity. We see an opportunity to enter the market countercyclically.’
Paul Gebhardt, managing director and founding partner of 15 Degree, added: ‘The real estate market is currently characterized by bankruptcies and negative headlines – at the same time, we are experiencing the greatest housing shortage in Germany in the last 50 years.’
The transaction was supported by PwC, Grant Thornton, Taylor Wessing, YPOG, CMS, Arendt & Medernach, Laurus Capital Partners, Savills, Knight Frank, and Engel & Völkers.
