Greystar Real Estate Partners’ European investment management arm has raised €725 mln in equity commitments for a flagship value-add discretionary vehicle targeting residential assets across Europe.
The vehicle received equity commitments from a diverse group of global institutional investors from Continental Europe, North America and Asia-Pacific including both new and existing Greystar investors.
The closed-end residential fund is targeting €1 bn of equity commitments and will leverage Greystar’s platform across the region to target top cities in the United Kingdom, Netherlands, Spain, Ireland, France, Germany and Austria.
The announcement comes at a time when the Europe multifamily and student housing sectors are characterised by limited supply of quality rental housing. This, coupled with both continued urbanisation trends in Europe’s top cities and the increasing unattainability of home ownership, has resulted in a growing renter cohort.
The vehicle will focus on the acquisition and select development of purpose-designed, thoughtfully amenitised and professionally managed rental residential assets, including multifamily and purpose-built student accommodation. The vehicle has seed investments in the UK, Ireland and the Netherlands with an active pipeline of investments across its target cities.
Mark Allnutt, senior managing firector - Europe, Greystar, said: ‘This opportunity is the culmination of more than seven years of hard work establishing the only vertically integrated pan-European residential platform, which means we have the capabilities to invest, develop and operate assets under one roof. We are therefore uniquely placed to offer simplicity and scale to investors seeking European residential exposure. Further, we are excited to take advantage of a market where demographic trends combined with the structural undersupply of housing is driving demand for high-quality rental properties across Europe.’
Wes Fuller, executive managing director – global investment, Greystar, added: ‘The investment opportunity in European rental housing is extremely compelling. We have an experienced and talented European team located in the cities where we have the highest conviction. The flagship strategy in Europe follows a successful track record of European value-add investments and follows the formula of Greystar’s long history of value-add acquisition strategies in the US. We are thrilled that existing and new capital partners have supported Greystar with this closing which is a testament to the market opportunity, our team and the demand for residential real estate globally.’
