Greykite launches €500m German residential platform

European real estate investor Greykite has launched a new German residential property platform called Baunest, starting with the acquisition of 1,600 apartment units. 

Greykite Baunest

This venture, in partnership with Arax Properties, aims to invest €500 mln over the next 18 months in key German metropolitan areas like Düsseldorf, Dortmund, and Frankfurt.
The initial portfolio, valued at €110,000 m2 across 134 assets, is currently 98% occupied, offering stable income and potential for increased value through renovations. Baunest will focus on providing affordable, high-quality rental homes, with renovations aimed at improving energy efficiency through upgrades to insulation, windows, facades, and individual units.
According to Greykite, the German multifamily housing market is experiencing a housing shortage, high occupancy, and relatively affordable rents. The company sees a strong opportunity to create value by modernising energy-inefficient properties. 
This acquisition is Greykite's ninth investment theme for its European Real Estate Fund I, which also includes data centre conversions, European logistics, European multi-let industrial, German student housing, single-family rental in the UK and in Denmark, European industrial outdoor storage, and Spanish care homes.
Michael Abel, founder and CEO of Greykite, said: “This acquisition marks a compelling entry point for Baunest and reflects our conviction in the resilience and long-term fundamentals of the German residential sector. Structural demand, favourable affordability and improving market conditions continue to create attractive opportunities for institutional capital. Baunest comes into the portfolio as an exciting ninth investment theme for the Fund, complementing our existing collection of differentiated investment platforms across the European industrial, living and digital sectors.”
Dan Valenzano, senior partner of Greykite, added: “We are pleased to be launching Baunest with the acquisition of this high-quality portfolio in key Western German markets. In addition to the diversified exposure and robust income profile, this portfolio presents a number of clear and actionable value-creation opportunities that we look forward to unlocking together with our partner Arax.”