Frankfurt-headquartered asset and property manager GPEP has set up a new joint venture with Geneva-based private wealth manager GMG Real Estate to source and deliver new development projects in Germany.
The aim of the joint venture is to collaborate with local project developers on larger deals, upwards of €25m, including buying existing properties or development land with planning approval.
Start-up capital of €100 million is available for investments into office, logistics, budget hotels and housing including co-living and student accommodation in stable locations throughout Germany, said GPEP.
Readers of these pages in REFIRE will know GPEP as a company specialising in the portfolio, asset and property management of retail centres and retail parks (Fachmarktzentren, normally grocery-anchored) and often buying the assets for funds managed by Universal Investment in Frankfurt. The company’s real skills lie in its know-how in sourcing, carrying out due diligence, and preparing business plans right through to buying, administering and portfolio restructuring and optimisation, through to exit.
Since 2015 GPEP has created a portfolio valued at more than €1bn, and has a staff of 45. Other big players in this now very competitive segment include Ireland’s Greenman Investments, Union Investment and Patrizia AG.
The private independent Swiss group GMG Real Estate currently manages about €600m on a gross development basis spread among 16 projects in the UK, Portugal, Switzerland and Germany. It expressly intends to expand its activity in Germany and says it can benefit from GPEP’s German network and local knowledge.
For GPEP, the joint venture brings together their acquisition, management and exit expertise with fresh capital from GMG along with GMG’s track record of project developments across Europe.
According to Marcel Fuhr, GPEP’s managing director, “We see attractive market opportunities in project development to work with local experts on larger, more complex projects with substantial equity requirements. Enquiries from property owners, developers and development professionals who may need backing for such projects are welcomed.” Now that’s an invitation.
