BlueRock Group and M&G Real Estate have confirmed a new partnership to develop residential property across Berlin. The Zurich and Berlin based asset manager BlueRock will work with M&G to upgrade an existing portfolio of 302 residential units and 27 commercial units. The project is backed by a €47 million investment designed to create much needed housing in the city.

The portfolio consists of 13 multi-family buildings situated within the S-Bahn ring. These assets are located in high demand areas such as Mitte, Friedrichshain-Kreuzberg, Tempelhof-Schöneberg and Neukölln. A key part of the plan includes the construction of 75 new apartments to help meet the local rental demand.

Ronny Pifko, CEO of BlueRock, commented: “With M&G, we are welcoming an experienced and internationally recognised partner who shares our commitment to Berlin and our long-term approach to quality and responsible investment. This partnership underlines the strength and attractiveness of our platform for institutional investors.”

Preparation for the project began when BlueRock first acquired the properties in 2022 and 2023. Since then, their local partner MB Advisors has secured the necessary planning permissions for densification. Detailed modernisations and extensions are now ready to begin following the entry of M&G into the venture.

Peter Riley, Head of Capital Partnerships at M&G, added: “This transaction demonstrates how M&G can provide flexible and innovative capital solutions, including secondary transactions and recapitalisations, for real estate projects, thereby delivering value for our global client base. Through our partnership with BlueRock, we will create additional high-quality housing while contributing to easing Berlin’s sustained housing shortage.”

Construction is scheduled to start in the first quarter of 2026. The programme will focus on comprehensive modernisation across the current buildings alongside the new builds. This joint venture aims to produce attractive returns for investors while providing high quality homes in a market where supply remains very tight.