Greystar Real Estate Partners has launched a new flagship fund series to develop purpose-built rental housing properties in the United Kingdom. Greystar U.K. Multifamily Fund I (GSUM I), which will be managed by affiliates of Greystar, will target c.€852m (£750m) in capital commitments from institutional investors and will leverage the company’s vertically integrated platform to establish a best-in-class portfolio focused on London.
Through its development-led strategy, the vehicle will seek to capitalize on the significant supply-demand imbalance in major markets driven by secular declines in new housing deliveries and shifting preferences towards rental housing. The vehicle will focus on efficient design, asset quality, and superior amenities and services to deliver a highly differentiated product that is largely absent in the U.K.
“There’s a significant need for professionally developed rental housing in the U.K. as the current stock is under-supplied, outdated and poorly managed,” said Bob Faith, Founder and CEO of Greystar. “The creation of this vehicle enables us to apply our market knowledge as well as our operational and development expertise to create an institutional-quality housing portfolio that appeals to a diverse base of renters.”
“Launching this vehicle represents an important milestone in further expanding our operations in the U.K.,” said Mark Allnutt, Greystar’s Senior Managing Director of Investment Management, U.K. “We have established a strong track record of putting capital to work in U.K. rental housing and are currently evaluating a robust pipeline of investment opportunities as we work to further institutionalize the sector.”
