Real Estate Giant Greystar Doubles Its Capital On The Continent | Business



The South Carolina rental behemoth collected a sizable chunk of dry powder to apply on the other side of the Atlantic.

Affiliate Greystar Real Estate Partners announced last week that it has tied its bows to a new fund that has frozen nearly $ 883 million in commitments from a global group of big-pockets of investors.

The money trail leading to the Charleston firm’s headquarters in Meeting Street is made up of institutional-level sponsors such as large pension funds. They are originally from Europe, North America and the Asia-Pacific region, according to a statement released on June 9.

The company said its new “pan-European” fund will target leading cities in the UK, the Netherlands, Spain, Ireland, France, Germany and Austria. The promotions will target the purchase, and in some cases construction, “specially designed” and “thoughtful” residential rental properties, including traditional apartments and student housing.

“This opportunity is the culmination of more than seven years of hard work to create the only vertically integrated pan-European residential platform, which means we have the opportunity to invest, develop and manage assets under one roof,” said Mark Allnutt, Senior Managing Director of Greystar. in the statement. “We are thus uniquely positioned to offer simplicity and scale to investors looking for residential property in Europe.”

Market forces and changing demographic trends are pushing the company to expand overseas, Greystar said. It says that European apartment buildings and student houses are experiencing a shortage of “quality” rental housing.

“This, combined with the continuing urbanization trend in Europe’s leading cities and the growing unavailability of home ownership, has resulted in a growing cohort of tenants,” the company added.

Wes Fuller, Greystar’s executive managing director of global investment, called the opportunity “extremely attractive.”

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The UK is a shining example of a highly fragmented market ripe for a major overhaul, according to a white paper published by the firm in November. Citing data from research firm Green Street Advisors, the document notes that 98 percent of the island nation’s rental housing stock “is not professionally managed and is unlikely to offer residents any amenities, let alone a building maintenance or ownership guarantee.” “

“We expect that emerging from the pandemic, moving to work from home and focusing on well-being will lead to increased demands for space in general and demand for modernized space in particular,” it said.

The continent-focused investment pool is the latest in a series of Greystar value-added funds that have collectively raised more than $ 6.2 billion in capital since 2011.

It also builds on the global expansion that the downtown company started across the pond nearly eight years ago. Greystar’s acquisition of 21 student housing estates in England at the end of 2013 gave the trilateral business – it buys, builds and operates – the first stronghold in overseas real estate.

Deals soon followed in other overseas markets, namely Mexico, South America and Asia.

Today, the company controls a $ 220 billion global portfolio of apartments, student residences and active adult communities in 200 markets. It is also one of the largest property management and ownership firms in the United States with 740,000 leases.

The COVID-19 pandemic did not slow down Greystar, which CEO Bob Faith started in Houston in 1992 and moved to Charleston a few years later, when the company became one of the first investors in the then young and now nearly completed development of Daniel Island.

During the health care crisis, the company made at least two major acquisitions of smaller competitors in Arizona and Texas, generating another huge money supply in the process.

While the newest funding deal targets cities overseas thousands of miles away, one of her most recent deals is a little further down the road from headquarters. Last month, the University of South Carolina selected Greystar as the developer and manager of the first phase of the Campus Village, a $ 210 million, 1,800-unit student housing project to be built on the Columbia campus.

Contact John McDermott by phone 843-937-5572 or follow him on Twitter at @byjohnmcdermott


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