Greystar holds final close of €1.55bn discretionary European residential fund
LONDON, 6 July 2022 – Greystar Europe Investment Management B.V. (the “Manager”), has announced the final close of Greystar Equity Partners Europe I (“GEPE I” or “the Fund”) at €1.55 billion. The Manager is a subsidiary of Greystar Real Estate Partners, LLC (“Greystar”). GEPE I is a discretionary close-ended, pan-European value-add fund focused on rental residential real estate. The Fund received equity commitments from a diverse group of global institutional investors, including both existing and new relationships to Greystar.
The Fund held its first close in May 2021, surpassed its original equity target of €1 billion and was oversubscribed. GEPE I will focus on the acquisition and select development of purpose-designed, thoughtfully amenitised rental apartments, student housing and young professional accommodation in Europe’s major cities. The Fund will capitalise on the significant opportunities created by urbanisation trends in major European cities, where a growing cohort of renters face both a significant undersupply of quality housing and a lack of professional management to suit their needs and lifestyle.
GEPE I has committed more than €770 million in equity to date across closed and identified assets less than a year into its investment period, with an additional c. €220 million in assets under exclusivity. The resulting portfolio spans 22 assets in 6 countries and comprises more than 11,000 units/beds in total. Select assets in the portfolio include a 682-bed purpose-built student accommodation complex in Utrecht, the Netherlands; the forward purchase of a 342-unit development near Dublin city centre, Ireland,; and 3,500 beds of purpose-built student accommodation across the UK. Greystar, which has experienced local teams in their target cities across Europe, will employ its proven value-add strategies of off-market sourcing, capital improvements, asset repositioning and operational enhancements to deliver value across the GEPE I portfolio.
Mark Allnutt, Senior Managing Director - Europe, Greystar, said: “Over the last seven years we have grown to become one of the largest vertically integrated residential platforms in Europe with over €8 billion in AUM and more than 750 team members. To do this, we leveraged nearly 30 years of global experience in rental housing. However, the key to our success is having local teams who ensure we source the right deals and tailor our product to the needs of renters in each city. GEPE I gives us significant discretionary capital to continue this journey of expansion in order to provide a new standard of accommodation and service to the European rental market."
Wes Fuller, Executive Managing Director – Global Investment, Greystar, said: “GEPE I follows the formula of Greystar’s long history of value-add strategies in the US. We are pleased to welcome existing and new capital partners from across Europe, Asia-Pacific and North America to the Fund and are excited at the opportunity to grow our portfolio with their support. The total capital raised not only reflects the institutional demand for European rental residential real estate, but also the strong track record and reputation Greystar has built in delivering great outcomes for our investors.”
Canvas Utrecht by Greystar
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Greystar is a leading, fully integrated real estate company offering expertise in investment management, development, and management of rental housing properties globally. Headquartered in Charleston, South Carolina, Greystar manages and operates over $221 billion of real estate in 224 markets globally including offices throughout North America, Europe, South America, and the Asia-Pacific region. Greystar is the largest operator of apartments in the United States, manages over 768,000 units/beds, and has a robust institutional investment management platform with more than $58.2 billion of assets under management, including over $24 billion of development assets. Greystar was founded by Bob Faith in 1993 with the intent to become a provider of world-class service in the rental residential real estate business. To learn more, visit www.greystar.com.