Greystar Completes £2.3B Fundraise To Target 'Compelling' Value-Add Resi Sector
Greystar has raised €2.7B (£2.3B) for its Greystar Equity Partners Europe II fund as it looks to capitalise on "compelling" opportunities in the European rented residential sector.
The mandate provides Greystar with more than €6.8B of investment capacity across acquisitions and development, to be targeted at key European cities, the company said.
Greystar said that GEPE II was 76% bigger than its predecessor, with €2.2B committed to the fund and an additional €550M committed to discretionary co-investment vehicles.
The fund is being deployed for acquisitions and developments in European markets including the UK, Ireland, Spain, the Netherlands, Germany, Austria, Denmark and France, focusing on markets with structural undersupply, favourable demand dynamics and high barriers to entry.
GEPE II will invest across the rental living sector with a focus on purpose-designed multifamily and student accommodation. The fund’s portfolio is expected to include newly built, sustainable assets.
To date, more than €910M of equity has been invested or committed through GEPE II across 28 investments totalling close to 13,000 homes and beds, with a further €425M of "advanced pipeline opportunities."
GEPE II investments include the 595-home build-to-rent scheme Barking Wharf, London, a 1,690-bed PBSA portfolio across Ireland, including Point Campus in Dublin, and schemes in Madrid, Copenhagen and Amsterdam.
Greystar’s European platform spans eight countries, with more than €19B in assets being managed or operated, comprising 91,000 BTR homes and PBSA beds.
"We are seeing markets that display chronic undersupply, constrained new delivery and a widening gap between the cost of renting and owning," Greystar Senior Managing Director Investment, Europe Daniel Breeden said in a statement.
"We believe that patient, operationally capable investors are best placed to capitalise on these conditions — and GEPE II’s goal is to do exactly that."
Greystar Chief Investment Officer Wes Fuller said the company saw rental housing as one of the most "compelling long-term investment themes" and added that the fund believed the market was at a point in the cycle where assets have repriced, entry yields have improved, new supply is constrained and underlying demand has strengthened.
