GREYKITE European Real Estate Fund has agreed the acquisition of an 8,000m2 vacant hotel in Munich, which will seed a newly formed €250m purpose-built student accommodation (PBSA) strategy, in a joint venture with Equilibria Group (JV).
The property being acquired from owner and operator NH Hotels is strategically located in the Southern part of Munich, with several of the city’s top-ranked universities easily accessible via public transport. The JV plans to undertake a comprehensive repositioning programme, converting the property into a modern PBSA asset with c. 190 rooms for the academic year 2026/27.
The JV is targeting more than €250m of investment into the high-growth, supply-constrained German PBSA sector, alongside Equilibria Group, which has more than 30 years of development and hotel conversion experience across Europe.
The transaction marks the launch of the Fund’s fourth investment strategy and the first in the PBSA sector, following the formal launch of GREYKITE in March this year. GREYKITE specialises in real estate and corporate investments across a series of asset classes with durable fundamentals in select European markets.
Michael Abel, Founder and CEO of GREYKITE, commented: “This transaction is a further demonstration of GREYKITE’s ability to source and execute unique off-market investments in key gateway markets, allowing us to build scale in our high-conviction investment themes. The PBSA market in Germany, despite being one of the largest and fastest growing in Europe, has failed to mature at the same pace as other Western European countries, which represents a sizeable investment opportunity. Partnering with Equilibria builds on our joint experience in the sector and as our fourth strategy for the Fund, it continues our model of working with best-in-class operating partners with deep and complementary local market expertise.”
Dan Valenzano, Senior Partner of GREYKITE, added: “This investment theme is built upon our thesis that the considerable undersupply of, and long-term demand growth profile for, modern, highly-amenitised PBSA schemes in Germany’s top student cities will drive strong rental and capital growth. Leveraging the GREYKITE team’s student housing track record, we already have a pipeline of similar repositioning projects, which will enable us to build a distinctive and scaled portfolio of modern PBSA properties.”
Image source - GREYKITE.
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