Matter and GCM Grosvenor to invest €500 mln in resi projects
Matter Real Estate, the London-based real estate investment firm, is investing €500 million in new residential projects in Germany and Denmark with the support of its investor, US alternative asset management firm GCM Grosvenor.
Matter will invest in 15 Degree, a residential development platform in Germany, as well as making a further investment into the Velkomn platform in Denmark. The company’s goal is developing a 2,000-unit portfolio across two of Europe’s strongest residential markets.
“These two investments show that Matter has the expertise to implement our pan-European residential strategy across key markets which present attractive growth opportunities”, said David Christie, CEO, Matter Real Estate. “We look forward to sustaining our ongoing partnership with GCM Grosvenor and welcoming other investors in these strategies.”
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 €170m.
Matter has also committed to funding equity for €250 million 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.
“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”, said Peter Braffman, Managing Director, GCM Grosvenor. “Our strategic investment programme 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.”