Matter Real Estate, a London-based real estate investment firm, with support from one of its investors, GCM Grosvenor, has inked an initial investment in residential development platform 15 Degree in Germany as well as further investment into the Velkomn platform in Denmark.
Matter, with the support of various GCM Grosvenor funds, will commit to new projects totalling over €500 mln across both companies, with the goal of developing a 2,000-unit portfolio across two of Europe’s strongest residential markets.
Velkomn, a platform established by Matter in 2023 to invest in single-family residential properties in Denmark, recently purchased a 667-unit stabilised portfolio across eight schemes for €170 mln.
Matter has also committed to funding equity for €250 mln of developments with 15 Degree, a German residential developer and manager.
The 15 Degree partnership, a new investment for Matter, will facilitate the development of a portfolio of sustainable residential properties in Berlin. The investment broadly supports the evolution of both new and distressed projects in the German market with the initial two assets secured totalling 156 units.
These investments build upon GCM Grosvenor’s previous commitments to Matter platform company Placefirst, a leading developer of attainable housing in the UK, and strategically enhance GCM Grosvenor’s access to two of Europe’s most significant residential markets.
The ongoing partnership reinforces the two firms’ commitment to pursuing strong, risk-adjusted opportunistic investments in the European residential sector for their clients.
David Christie, CEO at Matter Real Estate, said: 'Our partnership with GCM Grosvenor continues to go from strength to strength.
'These two investments show that Matter has the expertise to implement our pan-European residential strategy across key markets which present attractive growth opportunities. We look forward to sustaining our ongoing partnership with GCM Grosvenor and welcoming other investors in these strategies.'
Peter Braffman, managing director at GCM Grosvenor, said: 'European residential strategies remain a core focus of our investment program given the favourable supply/demand dynamics and the critical need for quality rental housing across the region.
'Our strategic investment program with Matter has given us a unique access point to these markets which we believe can generate positive outcomes for our clients and future residents.'
