BauMont Real Estate Capital and Reneo Group Launch €200 Million German Multifamily Partnership With Munich Acquisition

BauMont Real Estate Capital, the value-add investment management platform of M&G Real Estate, has entered the German market through the acquisition of a multifamily residential property in Munich's Obersendling district, the firms announced Sept. 30. The transaction is the first under a strategic partnership with Reneo Group that targets more than €200 million of German residential investments over the next 12 months.

The acquisition and planned transformation of the Obersendling property are valued at more than €70 million. The partnership is designed to create a scalable platform for identifying and executing value-add opportunities across the German residential market, combining BauMont's institutional investment expertise with Reneo's technology-enabled asset management capabilities.

Munich Acquisition and Redevelopment Plan

The property is located in Obersendling, a well-connected neighborhood in southwest Munich. The redevelopment program calls for a brown-to-green retrofit that will lift the building's energy-efficiency rating from class H — the least efficient end of Germany's residential energy-label scale — to class A. The project will also add approximately 1,700 square meters of additional residential floor area through rooftop additions and structural extensions, creating more than 30 new apartments and bringing the total unit count to more than 250.

Newmark, Drees & Sommer, GSK and DGX advised the parties on the transaction.

Ibrahim Awan, Investment Director Germany at BauMont Real Estate Capital, said the acquisition reflects the firm's view of the German residential sector. "Germany has one of the most undersupplied housing markets in Europe and at the same time a large stock of older buildings requiring investment," Awan said. "By partnering with Reneo, we combine BauMont's investment expertise with a specialized platform that can identify and execute such opportunities at scale."

Partnership Structure and Reneo's Role

Reneo Group operates as a technology and asset management platform that uses artificial intelligence to identify, standardize and execute value-creation strategies in residential real estate, focusing on decarbonization and the creation of additional floor area. Since its founding, the company has processed more than €750 million of transaction volume through its platform and currently manages a portfolio exceeding €400 million. Its capital partners include Peakside Capital, Ardian and BauMont Real Estate Capital, as well as pension funds and family offices.

Reneo was founded by Lennart Börner and Alexander Graubner-Müller, who serve as co-CEOs. Lambros Reppas serves as Managing Director. The company's shareholders include venture capital investors Eurazeo, Lakestar and Foundamental, family businesses Goldbeck and Bauwens, and a group of business angels who have collectively invested approximately €50 million in equity.

Alexander Graubner-Müller said the Munich deal illustrates the partnership's core thesis. "The Munich acquisition shows how institutional capital can efficiently finance projects that combine financial performance with measurable environmental impact," he said. "Together, we want to unlock underutilized properties and create urgently needed housing."

Lambros Reppas described the project as a template for the broader program. "Lifting more than 200 units from energy-efficiency class H to A and creating more than 30 new apartments combines climate impact with a clear economic logic — that is precisely what makes our model attractive to institutional investors," he said.

BauMont's European Platform and German Entry

BauMont Real Estate Capital was founded in 2017 and is led by Robert Balick and Frédéric Laurent, whose combined leadership team brings more than 50 years of experience executing value-add real estate strategies across the United Kingdom and continental Europe. The firm maintains offices in London, Paris and Frankfurt and focuses on repositioning and redevelopment opportunities in supply-constrained markets, with particular emphasis on residential, office and mixed-use assets. It operates within M&G Real Estate's broader €40 billion platform.

The German market entry represents BauMont's first residential investment in Germany. The firm's strategy centers on acquiring well-located properties where active asset management and redevelopment can generate returns, a model the Obersendling transaction is designed to demonstrate at scale.

German Residential Market Context

The partnership is entering a market defined by persistent housing undersupply. Annual residential construction in Germany has been estimated at roughly 200,000 apartments against demand of approximately 400,000 units. Munich remains Germany's most expensive major rental market, with median asking rents reaching €25.41 per square meter in the first half of 2026.

Across Germany's tier-one cities, median asking rents for existing units reached €16.25 per square meter in the first half of 2026, with rents rising between 4% and 6% in several major markets during that period, driven by excess demand, high construction costs and limited new-build supply. Median rents across Germany's top 20 markets rose approximately 5% over the same period, and a meaningful expansion of new supply is not expected before 2027.

Those conditions support the partnership's focus on existing assets where additional units can be created through retrofit and densification more quickly than through entirely new development. Germany's rent-control framework, which has been extended through Dec. 31, 2029, and high construction costs represent ongoing considerations for investors pursuing modernization-led strategies in the country's regulated residential markets.