APG-backed Greystar Australian multifamily fund raises A$1.3bn

Greystar has raised A$1.3bn (€830m) for the Greystar Australia Multifamily Venture Fund I (GAMV I) fund in its second and final close.

GAMV I, which raised A$370m in February last year, is a four-way partnership with three institutional investors, including Dutch pension fund manager APG and Ivanhoé Cambridge, and plan to potentially invest up to A$5bn in built-to-rent apartments in Australia.

Chris Key, managing director, Greystar Australia, told IPE Real Assets that the third investor was a “large European” pension fund. APG was the first investor in the partnership, and Greystar had a modest stake in the venture, he said.

“We have seeded the fund with two projects in Melbourne. One is a 686-apartment project on adjoining sites in South Yarra, and the second is a separate site for 700-apartments in South Melbourne.”

Key said the fund was actively looking for sites in Sydney. “Our ambition is to close on a number of those deals this year.”

The focus of the new fund would be on key gateway cities, starting with Melbourne and Sydney, then, the economics permitting, Perth, Adelaide, Brisbane and Canberra.

“Looking out 10 years,” he said, “with our equity backing and debt, we are looking at creating a portfolio of at least A$4bn, closer to A$5bn,” Key said.

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