Greystar Real Estate Partners and Credicorp Capital have closed its second Chilean rental housing development fund at more than $100 million. The fund’s limited partners include insurance companies, family offices and high-net-worth individuals.
Charleston, SC (September 13, 2018) – Greystar Real Estate Partners, LLC (“Greystar”), a global leader in the investment, development, and management of high-quality rental housing properties, and Credicorp Capital, a leading investment bank in the Andean Region, announced the final close on Fondo de Inversión Credicorp Capital Renta Residencial II with aggregate equity commitments of more than $100 million. Fondo Renta Residencial II is Greystar’s and Credicorp Capital’s second discretionary commingled fund focused on both the acquisition and development of high-quality rental housing assets in Chile. Its closing marks the largest ever single fundraise in the history of Chile’s rental housing market.
Including leverage, Fondo Renta Residencial II has $350 million in total capital available to invest and will finance the development and acquisition of five to seven rental housing properties with an aggregate of approximately 1,500 units in the eastern region of Santiago. Investors in Fondo Renta Residencial II include a diverse group of insurance companies, family offices and high-net-worth individuals, reflecting a balanced mix of institutional and private investors.
“We are pleased to expand our business in the Andean region with the completion of this historic fundraise, and we are grateful for the strong support we have received from a mix of highly reputable institutional and private investors,” said Bob Faith, Chairman and CEO of Greystar.
“We continue to believe in the long-term fundamentals supporting continued residential investment in Chile and throughout the Andean region, and we look forward to putting this capital to work in projects that seek to meet the fund’s risk-return profile. With these new developments, we will showcase the significant potential of rental housing rental projects to elevate the standard of living and offer greater choice for quality housing solutions in Latin America,” explained Bill Maddux, Executive Managing Director of Greystar.
The closing of Fondo Renta Residencial II advances Greystar’s growing Latin America real estate strategy, following the close of Fondo de Inversión Credicorp Capital Renta Residencial I in October 2016. Fondo Renta Residencial I raised approximately $37 million in equity and is currently developing a $90 million apartment community in Providencia, Chile. Both funds are focused on seeking to generating attractive risk-adjusted returns for investors and delivering an unmatched living experience for residents.
“Our experience as a global developer, investor and manager of rental housing combined with our deep local market knowledge of Chile provides us with a sustainable competitive advantage as we institutionalize the country’s rental housing industry,” said Tom Livelli, Managing Director for Greystar in Chile. “We are glad to once again partner with Credicorp Capital to grow our Latin American investment platform and further establish Greystar as the leading rental housing brand in Chile.”
Chile is one of the most dynamic, open, and stable economies in Latin America. The country has the highest real per capita income in South America, creating purchasing power for renters who seek the personalized services and refined apartments that are emblematic of Greystar communities. Providing a tailwind for rental demand are shifts in demographics and housing preferences combined with a home price-to-income ratio in Santiago that exceeds that of other major global cities.
Greystar is a leading, fully integrated real estate company offering expertise in investment management, development, and property management of rental housing properties globally. Headquartered in Charleston, South Carolina, with offices throughout the United States, Europe, Latin America, and Asia-Pacific, Greystar is the largest operator of apartments in the United States, managing more than 435,000 conventional units and student beds in over 150 markets globally. Greystar also has a robust institutional investment management platform dedicated to managing capital on behalf of a global network of institutional investors with nearly $26 billion in gross assets under management including more than $9.7 billion of developments underway. With approximately $6 billion in student housing assets under management, Greystar is the 10th largest student housing operator in the United States, the largest student housing operator in Spain, and the 3rd largest owner of student housing assets in the United Kingdom with a growing presence across Europe. Greystar was founded by Bob Faith in 1993 with the intent to become a provider of world class service in the rental housing real estate business. To learn more about Greystar, visit www.greystar.com.
About Credicorp Capital
Credicorp Capital is the investment banking platform of Credicorp Ltd. The firm specializes in providing advisory in Capital Markets, Corporate Finance, and Asset Management in the Andean region as a result of combining the experience, market positioning, and knowledge of three leading institutions: Credicorp Capital Peru (former BCP Capital), Credicorp Capital Colombia (former Correval), and IM Trust in Chile. Credicorp Capital employs more than 1,000 professionals and manages US$ 8.5 billion in assets and advises an additional US$4 billion. In the past five years, Credicorp Capital has placed more than US$ 12.5 billion in capital market transactions and advised clients in transactions over US$ 48 billion.