Greystar invests in first Build to Rent development in Germany

Greystar invests in its first Build to Rent development in Germany with 234 residential apartments in Hamburg.

Harburger Ring scheme in Hamburg - Greystar's first Build to Rent development in Germany as part of its develop-to-core venture | BTR News
Harburger Ring scheme in Hamburg - Greystar's first Build to Rent development in Germany as part of its develop-to-core venture.

Greystar announces it has acquired its first Build to Rent development in Germany – in Hamburg’s up-and-coming Harburg district. The acquisition is part of Greystar’s develop-to-core venture which launched in 2021 with a global institutional investor – to build a diversified, high-quality rental apartment portfolio in Germany and Austria.

The forward purchase transaction with developer BPD is the first major development project in Germany and Austria acquired by Greystar and follows a purchase in Frankfurt (LY30) and a development in Vienna (District Living).

The asset in Hamburg contains 234 residential homes – a mix of studio, one, two- and three-bedroom apartments. Greystar plans to add approximately 2,060 sqm of retail space on the ground floor, 28 parking spaces, and approximately 400 sqm of social space including a resident’s lounge, co-working area and a private gym to the development.

The building blends in well with the surrounding development, with the 11-storey high-rise building set to become a landmark. The facades facing the streets and the square are clad in clinker brick – a typical Hamburg material. The building has predominantly floor-to-ceiling windows and the two inner courtyards are terraces for residents use only.

Harburger Ring Build to Rent scheme in Germany - Greystar | BTR News
Harburger Ring Build to Rent scheme in Germany.

The interior design concept is being developed by Greystar in close consultation with BPD. Greystar has appointed JOI-Design, a local interior designer who will develop a bespoke interior design for the building.

“The investment strategy for our German and Austrian develop-to-core venture, is to build a diversified portfolio of institutional-quality rental flats by focusing on multifamily properties of scale in key markets such as Berlin, Frankfurt, Hamburg, Munich, Cologne, Düsseldorf, Stuttgart and Vienna.

“We are implementing specific value creation strategies based on Greystar’s global planning and development experience to provide a unique rental experience to our residents and achieve above-average returns and yields for our investors. Each asset will include a range of high-quality amenities tailored to the market and leverage Greystar’s market-leading operational platform, which focuses on providing an exceptional customer experience and includes a dedicated onsite team to provide support to residents 24/7.”

Thomas Wünsche, Senior Director – Germany and Austria, Greystar

The acquisition of this new development aligns with Greystar’s strategy of delivering highly amenitised purpose-built products close to transportation hubs. The asset is within walking distance of major public transport links and directly adjacent to supermarkets, restaurants and multiple shopping facilities. The development is a response to the persistent undersupply of high-quality rental flats in Hamburg, with a city-wide vacancy rate of 0.2%, according to CBRE.

New lifestyles and social trends have led to a continuous increase in single and two-person households in Hamburg, which is a driver of demand for quality rental flats – and the growth forecast ensures strong future demand.

The Harburg district is located south of Hamburg’s city centre. it offers proximity to the Technical University of Hamburg and numerous employers including Continental, Mercedes Benz, Tesa and TK Insurance. In addition, Channel Hamburg at Harburg Harbour is an ongoing urban development project and the location for around 160 mainly technology-oriented companies with 6,000 employees.