Primus acquires another site for rental housing development in Berlin – further acquisitions planned in the short term

Primus Immobilien AG, a leading project developer in Berlin, has acquired a site at Blücherstraße 26B in Berlin-Kreuzberg for a rental housing development. The property currently includes a nine-storey residential building constructed in 1965, which is to undergo comprehensive energy-efficient refurbishment as part of the project. The site will be complemented by four new-build structures of up to six storeys. A preliminary building permit has already been granted. Sustainability certifications targeting DGNB Gold and QNG Plus are planned for the new buildings. Commercial use in the form of retail or local supply services is envisaged on the ground floors. In total, approximately 320 residential units with more than 16,000 square meters of gross floor area (GFA) are planned. Construction is scheduled to commence in the first quarter of 2026.

“Looking at building permit and completion figures is alarming – the low level of construction activity in the residential sector, both nationwide and in the capital, is increasingly exacerbating the housing shortage, with the supply gap continuing to widen. This makes it all the more positive that we have once again succeeded in acquiring a site for rental housing development in Berlin and remain one of the few active players continuously contributing to the creation of new rental housing. We are currently in advanced negotiations for two additional sites and aim to acquire them in the short term,” comments Sebastian Fischer, CEO of Primus Immobilien AG.

Following acquisitions at Berliner Straße 100 in Berlin-Pankow and Kärntener Straße 21–23 in Berlin-Schöneberg, Blücherstraße 26B represents the third acquisition in 2024, totaling more than 60,000 square meters of gross floor area. Alongside the development of condominiums (including Knesebeckstraße 10) and commercial properties (including Lietzenburger Straße 76 and Greifswalder Straße 168), the establishment of a portfolio of modern, sustainable rental housing is a core element of Primus’s corporate strategy.

The objective is to build a portfolio of 2,000 rental apartments and complete them by 2028. The focus is on central, inner-city locations with excellent transport connections. In line with its established standards, the portfolio targets high-quality architecture and the highest sustainability benchmarks. At Berliner Straße, Primus is already set to commence construction of around 291 rental apartments in the course of 2025, featuring high-end fittings and shared amenities such as fitness areas, co-working spaces, and a rooftop terrace for residents.

“We are seeing a renewed increase in demand and growing interest in the residential asset class among institutional investors and family offices. At the same time, limited construction activity is leading to scarce supply amid rising demand – and this is precisely where we aim to create attractive offerings through our pipeline,” adds David Neuhoff, CFO and shareholder of Primus Immobilien AG.

Paragonia Partners acted as transaction advisor on the acquisition.