The companies Primus and Greystar have expanded their cooperation in the German rental housing segment. They are establishing a new joint venture with the aim of developing build-to-rent projects in Berlin, Munich, Hamburg and Frankfurt. Equity investments of approximately EUR 200 million are planned for these undertakings, indicating a total project volume of more than EUR 600 million.
The partners already collaborate in four Berlin-based joint ventures, within which approximately 1,500 residential units are to be completed by early 2029. Around 1,000 of these units are already under construction. With the establishment of the current joint venture, Primus and Greystar are extending their activities beyond Berlin for the first time, to include other significant German metropolitan areas. A first transaction has already been concluded, and the current pipeline also includes further project opportunities.
Strategic Focus on Metropolitan Regions
Sebastian Fischer, CEO of Primus AG, commented on the strategic relevance of the commitment. He emphasised that both companies are convinced of the attractiveness of the housing markets in Germany's largest metropolitan areas. Demand remains high due to strong fundamentals, while overall Germany is facing a shortage of over one million homes. Fischer highlighted that sustainable new residential construction therefore represents not only an attractive investment but also an essential contribution to solving the existing housing shortage.
Harlan Schade, Director – Investment, Germany & Austria, at Greystar, underscored the ambition to actively contribute to solving the challenges in new residential construction. This means providing capital long-term, leveraging the expertise of global and local teams, and collaborating with experienced partners who successfully implement projects. He elaborated that the partnership with Primus in Berlin has already demonstrated the effectiveness of this combination. The current expansion offers the opportunity to build on these experiences and realise further rental homes in Germany's major cities.
Consolidation of Market Position and Expansion of Offerings
By expanding the partnership, Primus and Greystar aim to continue their collaboration long-term to create additional rental homes in strained markets. The focus is on developing professional residential projects, geared towards long-term leasing, in Germany's four largest cities.
- —Primus and Greystar establish new joint venture for build-to-rent housing.
- —Goal is to develop build-to-rent projects in Berlin, Munich, Hamburg, and Frankfurt.
- —Planned project volume: over EUR 600 million with EUR 200 million in equity.
- —Continuation of an already established collaboration in Berlin.
David Neuhoff, CFO of Primus, interpreted the expansion of the cooperation with Greystar as proof of Primus's positioning as a reliable partner for institutional investors in the housing construction sector. He explained that the new joint venture enables the transfer of the successful Berlin model to Munich, Hamburg, and Frankfurt, thus marking a significant step towards establishing Primus as a leading residential developer in Germany.
