Greystar Lines Up One Of The Largest UK BTR Deals Ever

U.S. living specialist Greystar is in talks to buy a portfolio of 900 rental apartments in south London for about £500M.

Greystar is in negotiations with Australian developer Lendlease and the Canada Pension Plan Investment Board to buy the apartments at Elephant Park, although the talks are not yet exclusive, the Financial Times reported.

Greystar would buy the apartments for one of its discretionary investment vehicles, and the FT reported it would look to make higher-than-core returns by investing in amenities and operations at the scheme. 

It is a similar strategy to that being undertaken at Barking Wharf, a 595-apartment scheme in east London that Greystar bought in September. 

While Greystar is still developing new build-to-rent homes in London, the deal is part of a trend of growing investment in existing BTR assets where there is the potential to raise rents. 

At £500M, it would be one of the largest-ever UK investments in standing BTR assets, although that is likely to be surpassed soon. Morgan Stanley and Ridgeback are in talks to buy a £1B portfolio of London-focused operational BTR assets from housing association L&Q, and fellow housing association Notting Hill Genesis has a roster of big-name investors lining up to buy a £750M portfolio it is selling.

Elephant Park was a joint venture between Lendlease and CPPIB to develop as many as 3,200 homes in the south London district, as well as potentially 500K SF of offices, depending on planning permissions. The 900 homes being sold are the rental portion of the scheme, while other homes have been built for sale. 

Lendlease sold a 1.2-acre portion of the site to developer Hub and private equity firm H.I.G. Capital for £42M in December 2024. The duo will build a mixed-use development offering shared-living homes, affordable homes, new public realm, ground-floor retail and a health hub.

Lendlease announced last year it was exiting its global construction and development business and selling off its international developments over time so it can concentrate on its domestic market. 

Following the announcement, it created a joint venture with The Crown Estate, giving the UK company an option to build its undeveloped schemes, including a major regeneration above and around Euston station.