Greystar Real Estate Partners, APG Asset Management N.V., Bouwinvest Real Estate Investors and MIRA Real Estate, which is part of Macquarie Infrastructure and Real Assets, has closed a China-focused fund at $450 million. The fund will focus on properties in Chinese markets with an initial focus on Shanghai.
CHARLESTON, S.C. & SHANGHAI, China–(BUSINESS WIRE)–Greystar Real Estate Partners, LLC (“Greystar”), a global leader in the investment, development, and management of high-quality rental housing properties, together with its investment partners APG Asset Management N.V., Bouwinvest Real Estate Investors, and MIRA Real Estate, part of Macquarie Infrastructure and Real Assets (MIRA), today announced the first close of a Greystar-led China-focused fund with US$450 million in equity commitments.
Greystar established its Asia-Pacific rental housing platform (“Greystar Asia-Pac”) with MIRA Real Estate last year and is now joined by APG Asset Management N.V. who intends to support the platform’s rental housing strategy across the region. The platform combines the partners’ substantial relationships and proven track record in the region with Greystar’s deep rental housing expertise to serve as the pre-eminent, vertically integrated owner, developer, and operator of rental housing in Asia-Pacific.
The China-focused fund is the first within Greystar Asia-Pac. The fund will invest in high-quality assets in top-tier Chinese markets with an initial focus on Shanghai, owing to the city’s attractive rental housing supply and demand fundamentals.
“China is an extraordinarily compelling growth market for rental housing investment today and is notably lacking in quality housing for the wave of renter demand driven by the rapid growth of urban market populations and incomes,” said Wes Fuller, leader of Greystar’s global Investment Management business. “Establishing this fund gives us an early mover advantage to implement our unique investment strategy by assembling and operating an unrivaled rental housing portfolio at scale.”
“We are in the process of building a vertically integrated local team with specialists in development, investment and operations unique in this market. The team will be locally managed but supported by Greystar’s global team, network, and capital,” said Charles Ma, Managing Director for Greystar in China. “We will lead in professionalizing the rental housing industry in China and are uniquely positioned to do so. Our investment strategy will allow us to develop a significant rental housing pipeline in China and grow our platform to realize the tremendous opportunity we see in the region.”
Immediately following acceptance of the new capital commitments, the partnership will close on the funds initial investment located in the inner ring of Shanghai. Greystar’s plans include a comprehensive repositioning program to configure the asset into a rental building highly attractive for executives.
“APG is already a long-term investor in rented residential strategies in both Europe and the U.S. We expect this sector to establish itself very quickly as an institutional asset class throughout Asia-Pacific,” said Graeme Torre, APG’s Head of Private Real Estate Asia-Pacific. “Partnering with Greystar and Macquarie at the platform level provides the ability for us to consider the sector on a regional basis. We also see Greystar’s first-class operating capabilities combined with like-minded investors such as APG and Bouwinvest as a distinct head start to the first China development venture.”
“Bouwinvest has extensive experience investing in and managing rental housing, both through our flagship fund in the Netherlands and our international investments globally. This investment in the China multifamily sector builds on that track record and is highly complementary to our recent investment in a rental housing portfolio in central Tokyo,” said Tjarko Edzes, Director for Asia-Pacific Investments for Bouwinvest. “We are pleased to further expand our investment exposure in the Asia-Pacific region, where Bouwinvest has recently opened a local office. We are delighted to partner with both Greystar and APG in this initial venture.
“There is a significant gap in the Asia-Pacific region for quality rental housing provided by specialist managers. Having worked closely with Greystar in the United States and United Kingdom over the last decade, the opportunity to work together across Asia-Pacific and introduce Greystar’s proven expertise and experience is highly compelling,” said Brett Robson, Global Head of MIRA Real Estate. “We are delighted to partner with Greystar, reflecting this being consistent with our strategy of partnering with leading specialist operators around the world.”
Greystar is a leading, fully integrated real estate company offering expertise in investment management, development, and management of rental housing properties globally. Headquartered in Charleston, South Carolina, Greystar manages and operates an estimated $115B of real estate in over 180 markets globally including offices throughout the United States, UK, Continental Europe, Latin America, and the Asia-Pacific region. Greystar is the largest operator of apartments in the United States, managing approximately 500,000 units/beds, and has a robust institutional investment management platform with $32B of assets under management including $12B of assets under development. Greystar was founded by Bob Faith in 1993 with the intent to become a provider of world-class service in the rental residential real estate business. To learn more, visit www.greystar.com.
About APG Asset Management N.V.
APG Asset Management N.V. is a Dutch pension capital investor and one of the largest pension fiduciary asset managers worldwide. APG manages €471 billion (October 2018) on behalf of its pension fund clients and works for over 25,000 employers, providing the pension for one in five families in the Netherlands (approximately 4.5 million participants). For more information about APG, please visit www.apg.nl.
About Bouwinvest Real Estate Investors
Bouwinvest Real Estate Investors B.V. is specialised in managing real estate portfolios for institutional investors. Bouwinvest strives to achieve risk-adjusted returns on behalf of its pension fund clients. We manage €10.5 billion (HY 2018) in assets within five Dutch property sector funds and three international real estate investment mandates in Europe, North-America and Asia-Pacific.
About MIRA Real Estate
MIRA Real Estate is a global real estate manager focusing on listed and unlisted funds and asset management, real estate platform and direct investment and private capital markets transactions services. MIRA Real Estate has an integrated global network of over 230 people in 18 countries around the world and, as at 31 December 2018, managed assets of ~$A25 billion* across its funds and platform investments.
MIRA Real Estate is part of Macquarie Infrastructure and Real Assets (MIRA), one of the world’s leading alternative asset managers. As at 31 December 2018, MIRA managed $A185.9 billion in assets, including; 161 portfolio businesses, ~400 properties and 4.6 million hectares of farmland.
For further information, please visit www.MIRAFunds.com
* Including Macquarie Capital Real Estate Investment’s (MREI) AUM, with MREI not formally combining with MIRA until February 2019.