Allianz Real Estate, a real estate investment and asset manager, has closed its previously announced acquisition of a stake in London-based Chapter, a student accommodation brand. Chapter is backed by Greystar Real Estate Partners and the Public Sector Pension Investment Board. Eastdil Secured LLC and Jones Day advised Greystar and PSP Investments on the transaction with Linklaters LLP providing legal advice for PSP Investments. Savills and Herbert Smith Freehills advised Allianz.
LONDON–(BUSINESS WIRE)–Greystar Real Estate Partners (“Greystar”), a global rental housing leader, the Public Sector Pension Investment Board (“PSP Investments”), one of Canada’s largest pension investment managers, and Allianz Real Estate (“Allianz”), the global real estate investment and asset manager, today announced the completion of a joint venture partnership to grow Chapter, London’s leading student accommodation brand.
The joint venture was announced at exchange on June 22, 2018 and has now secured all regulatory approvals, thereby allowing the transaction to complete.
Allianz has acquired an interest in Chapter alongside PSP Investments and Greystar’s current stake. The equity investment volume of the transaction that Allianz Real Estate is executing on behalf of various Allianz insurance companies, stands at around £350m. The new partnership supports an expansion program targeting 10,000 student beds and doubling the size of the portfolio within five years. The partnership’s strategy is to continue to grow the portfolio through acquisitions and new developments in addition to continuing to improve the existing assets and Chapter brand.
Greystar is the global leader in the operations, investment and development of rental housing with over 435,000 units under management globally. It will continue to manage this portfolio, which currently comprises 5,100 student beds in ten central London locations, including Aldgate, Islington, King’s Cross, South Bank and Spitalfields. Chapter White City in west London and Chapter Highbury II in north London, the two newest additions to the Chapter portfolio, will launch in September 2018.
Commenting on the JV partnership on June 22, Bob Faith, Founder and CEO of Greystar, said:
“This partnership marks an important step in the rapidly growing institutional-grade rental housing and student accommodation investment market in the UK. We are excited to partner with PSP and Allianz on this exciting endeavor. We have a hugely ambitious target to scale the business to secure major operational efficiencies. This joint venture means we’re now in a strong position with tremendous financial resources to realize Chapter’s potential.
“London’s housing market is under enormous pressure and student accommodation in prime locations is highly constrained,” added Faith. “London is a global leader in higher education attracting students from around the world and Chapter is well positioned to provide quality housing in prime locations. We have built Chapter into a strong brand, which students and parents from around the world trust to provide a safe and secure home while they are pursuing their studies.”
Commenting on the JV partnership on June 22, Stéphane Jalbert, Managing Director (Europe and Asia Pacific), Real Estate, PSP Investments, said:
“We are very excited to welcome Allianz, an internationally renowned and respected real estate investor, into our established and successful partnership with Greystar. Chapter is now a recognized, income-generating business and this new partnership will strengthen and grow this highly efficient purpose-built student accommodation platform. Allianz and Greystar share our long-term view and focus on high-quality assets in central London with a steady income stream. Teaming up will facilitate a period of expansion for Chapter in London.”
Greystar and PSP Investments were advised by Eastdil Secured, LLC and Jones Day. Legal advisor for PSP Investments was Linklaters LLP. Allianz was advised by Savills and Herbert Smith Freehills.
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 over 435,000 units in over 150 markets globally, with an aggregate estimated value of approximately $80 billion. Greystar also has a robust institutional investment management platform dedicated to managing capital on behalf of a global network of institutional investors with over $26 billion in gross assets under management including more than $9.7 billion of developments that have been completed or are underway. 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. Since entering the UK market in 2013, Greystar has built up a property portfolio worth £4.5 billion, representing over 32,000 units and comprising both student housing and multifamily rental accommodation. The company is an investor and operator of student brand Chapter and a shareholder in student accommodation provider iQ. To learn more about Greystar, visit Greystar.com
Chapter is a market leading student accommodation brand, providing premium student living in the best London locations. Chapter has 5,100 student beds in ten communities located in London fare zones 1 or 2, near top universities and excellent transport links. Chapter attracts a vibrant resident mix with both domestic and international students from over 105 countries. Chapter provides a totally unique living experience for students from across the globe. With its exclusive membership system, students who live with us have access to all amenities and events across our London residences, enabling them to build a city-wide community of friends whilst enjoying some of the most extraordinary living spaces in the London student market. Greystar is a leading, fully integrated US real estate firm and one that thousands of families from around the world trust to provide their children with a home away from home while completing their studies. With over 18 years’ experience in the student accommodation sector, Greystar has a long-standing reputation for world-class customer service and exceptional quality accommodation. To learn more about Chapter, visit chapter-living.com
ABOUT PSP INVESTMENTS
The Public Sector Pension Investment Board (PSP Investments) is one of Canada’s largest pension investment managers with CAD$153 billion of net assets as of March 31, 2018. It manages a diversified global portfolio composed of investments in public financial markets, private equity, real estate, infrastructure, natural resources and private debt. Established in 1999, PSP Investments manages net contributions to the pension funds of the federal Public Service, the Canadian Forces, the Royal Canadian Mounted Police and the Reserve Force. Headquartered in Ottawa, PSP Investments has its principal business office in Montréal and offices in New York and London. For more information, visit investpsp.com or follow us on Twitter and LinkedIn.