Primus Immobilien AG, HighBrook and BATO Form Joint Venture for 15,000-SM Rental Housing Project in Berlin-Treptow
BERLIN — Primus Immobilien AG has formed a joint venture with international real estate investor HighBrook and investment manager BATO Group to develop a rental apartment project in the Berlin-Treptow submarket, the companies announced June 1.
Deal Structure: Land Contributed, Office Retained
Under the terms of the joint venture, HighBrook and BATO will contribute the relevant plot of land to the project company. HighBrook and BATO will retain ownership of the neighboring office complex known as Treptown, which sits adjacent to the residential development site.
Engel & Völkers Commercial acted in an advisory and intermediary capacity on the transaction.
Project Specifications and Sustainability Targets
The residential project will have a total above-ground gross floor area of just under 15,000 square meters. The property is being designed to the KfW-40 energy efficiency standard, with additional certifications including DGNB Gold being targeted.
The project was originally planned for commercial use before being repositioned as residential, a dynamic that Primus Immobilien AG's CFO and Shareholder David Neuhoff highlighted in the announcement.
"The site is a fantastic example of how a project originally planned for commercial use can, in today's environment, become an ideal setting for new residential space," Neuhoff said.
Capital Markets Context
Neuhoff pointed to constrained development finance as a key driver of the joint venture model. "In a market environment that continues to be characterised by limited access to capital for project developers, robust partnerships with institutional investors are a decisive success factor," he said.
"At the end of 2023, we began building our portfolio of rental apartments in exciting Berlin locations. We have succeeded in expanding the pipeline to 2,800 apartments," Neuhoff said.
He added that international investor interest in the German residential market is returning. "International investors are once again turning their attention to the German residential market and Berlin in particular," Neuhoff said. "We are continuously expanding our network of capital partners, combining local implementation expertise with a deep understanding of our investors' requirements."
Financial terms of the joint venture, including total project cost and anticipated unit count, were not disclosed.