Greystar Real Estate Partners has acquired the “Kanso” development, a 303-unit mid-rise residential project in Frankfurt. This is the second acquisition for its Germany and Austria €1bn develop-to-core venture with a global institutional investor following the announcement that Greystar has purchased 234 units in Hamburg earlier this year.
The forward purchase transaction with Argaman Group will see the “Kanso” building, designed by V. Zelmanson and Planquadrat Architects, ready for occupation from Summer 2022. It will predominantly comprise studio apartments and a selection of one-beds with a range of resident amenities alongside a kindergarten, restaurant and retail space totaling 685m².
The building will operate under Greystar’s expanding pan-European student and young professional brand “Canvas Living”. The brand is already operating in other European metropolises and university cities such as London, Coventry, Glasgow and Utrecht. Canvas Frankfurt will be the first building in Germany for the new multi-asset strategy, which enables Greystar’s partners to tap into a wider footprint and the financial efficiencies of scale via a license model.
Mark Allnutt, Senior Managing Director – Europe, Greystar, said: "We are making good progress with our strategy to build a diversified portfolio in Germany and Austria from the ground up focusing on residential assets of scale. We are well capitalised and continuing to look for forward purchase, development and value-add opportunities in key markets including Berlin, Hamburg and Vienna. Our new asset will join our network of Canvas properties across Europe and as the footprint continues to grow, we hope to offer residents the ability to move seamlessly between locations, giving them easy access to a range of cities.”
David Roitman, founder of the Argaman Group, commented: "Since 2012, the Lyoner Quartier (formerly Bürostadt Niederrad) has been developing dynamically from a pure office district into a new mixed-use neighborhood. The challenges are manifold. One has to compete with residential construction against economically more profitable uses and also create economically less advantageous uses such as retail and gastronomy so that the entire situation becomes attractive for future users. Implementing the Kanso vision structurally took priority over cost or technically simpler solutions. In the end, the realization exceeded our expectations."
