BauMont Real Estate Capital, the real estate investment manager of M&G Real Estate, has acquired a residential property in Munich in cooperation with local partner Reneo. The transaction for the so-called brown-to-green property exceeds a value of EUR 70 million and marks BauMont's entry into the German real estate market.
This acquisition is the first step in a strategic cooperation that foresees an investment target of over EUR 200 million within the next twelve months. The aim is to establish a scalable platform to unlock value-add potential in the German residential property market. Ibrahim Awan, Investment Director Germany at BauMont Real Estate, stated that the company sees opportunities in well-located residential properties where energy efficiency and living space can be created, which simultaneously generates added value for clients. He emphasised that Germany is among the housing markets with the largest supply deficit in Europe and possesses a large stock of older buildings with significant investment needs.
Development in Obersendling
The acquired property is located in Obersendling, a district in southwest Munich with excellent infrastructure connections. The plan is to transform the asset into a more energy-efficient residential building with higher residential density. As part of the brown-to-green renovation, the energy efficiency is to be improved from class H to class A. Through additional floors and structural extensions, approximately 1,700 square metres of living space and more than 30 new residential units are to be created. This will increase the total number of units to over 250.
M&G Real Estate sees attractive opportunities for active asset management in the German residential property market, particularly where investments contribute to increasing energy efficiency, creating additional living space, and achieving long-term sustainability goals. Alexander Graubner-Müller, founder and co-CEO of Reneo, stressed that the partnership with BauMont demonstrates how institutional capital can finance projects that combine financial performance with measurable environmental impact. Together, they aim to unlock previously unexploited potential and create much-needed housing.
The strategic cooperation with Reneo is significant because their technology and asset management platform utilises artificial intelligence. This serves to systematically identify, standardise, and implement value creation potential in residential properties through decarbonisation and the creation of additional living spaces. Lambros Reppas, Managing Director at Reneo, explained that the investment in Munich is exemplary for the company's scalable business model. The objective is to identify existing properties with significant energy-related and structural development potential and to combine institutional capital with operational implementation expertise. The energy modernisation of over 200 residential units from class H to A and the creation of more than 30 additional flats combine climate impact with clear economic logic.
Advisory Parties
- —Newmark
- —Drees & Sommer
- —GSK
- —DGX
