Greystar has announced this Tuesday the definitive closing of its vehicle Greystar Equity Partners Europe II (GEPE II), which exceeds 2.7 billion euros in committed capital.
With this figure, the vehicle consolidates itself as the largest pan-European value-add residential fund established to date, as detailed by the firm in a statement, where it also estimates a total investment capacity of over 6.8 billion euros to acquire and develop projects in major European cities.
The company explains that GEPE II has raised resources from a broad and diversified international institutional investor base (Europe, North America, the Middle East, and Asia-Pacific), with commitments led by sovereign funds and large pension funds. The capital will be directed towards acquisition and development operations in "key" markets such as the United Kingdom, Spain, the Netherlands, Germany, Austria, Denmark, Ireland, and France.
Focus on rental housing and new generation of assets
GEPE II—which the manager defines as a "milestone" within its global value-add fund program and 76% larger than its predecessor, GEPE I—will direct its resources to the rental housing market, with a special emphasis on multifamily residential specifically designed for this use and student accommodation.
Likewise, the fund's portfolio will likely include new generation assets with high sustainability requirements and affordable rental housing, aimed at meeting the demand of the so-called 'missing middle' (lack of medium-density housing) in an environment of rising property ownership costs, as highlighted by the global investment, development, and asset management company.
"The volume of committed capital in GEPE II allows us to have the scale and resources necessary to act agilely and decisively when opportunities arise, especially at a time when markets have adjusted and supply remains limited," analyzes the managing director Southern Europe of Greystar, Rafael Fernández-Villaverde, who considers Southern Europe to be "one of the most attractive residential markets" today.
"With GEPE II, we are taking advantage of our scaled platform in Europe at a point in the cycle where markets have readjusted, entry yields have improved, new supply is limited, and underlying demand has strengthened further," declares Greystar Chief Investment Officer Wes Fuller in this regard.
"We are focused on markets with the best long-term fundamentals and those where we see the greatest opportunity to meet our goal of delivering attractive risk-adjusted returns for GEPE II investors," he adds.