Greystar announces strategic partnership with ADIA

Greystar announces a strategic partnership of up to £2.2bn with Abu Dhabi Investment Authority (ADIA) to develop Build to Rent in London.

Fizzy East - Greystar | Abu Dhabi Investment Authority | BTR News
Fizzy East.

Global leader in the investment, development and management of high quality rental housing properties – Greystar Real Estate Partners LLC – announces a new strategic partnership with a wholly owned subsidiary of the Abu Dhabi Investment Authority (ADIA) of up to £2.2bn to develop Build to Rent housing in London and its surrounding commuter towns.

The growth strategy will focus on delivering new assets through ground-up development – leveraging Greystar’s extensive experience and track record in the market. Since launching its UK business in 2013, Greystar has executed over £8bn in transaction activity in the market. The strategic partnership will be supported by Greystar’s extensive pipeline and an operating platform of over 700 team members across Europe.

“We believe strong long-term fundamentals are driving the demand for purpose-built rental housing in the London area. With the creation of this platform, our objective is to address this specific, growing market opportunity while expanding our relationship with a proven, world class partner in Greystar. This is consistent with our approach of investing in high conviction opportunities, at scale, to capture future growth trends.”

Salem Al Darmaki, Deputy Director of the Real Estate & Infrastructure Department, ADIA

The strategic partnership is targeting a development pipeline of approximately £1.8bn in total capitalisation and equity commitments of up to £750m between the partners. Greystar agreed to purchase a 0.84-acre site subject to planning on Lombard Road in Battersea, London for £31m in June 2021 that will become the partnership’s first new seed asset.

This represents the second portfolio of scale to be developed by Greystar with ADIA subsidiaries in Europe. Since 2015, Greystar and ADIA subsidiaries have created a portfolio of over 6,000 homes for students and young professionals in the Netherlands under the OurDomain brand. Earlier this year, Greystar completed the latest stage of its OurDomain Amsterdam-Southeast Campus, adding a further 600 homes. OurDomain Rotterdam Blaak also reached its highest point in April 2021.

In conjunction with this new strategic partnership, Greystar will also assume management of the Fizzy Living portfolio. Metropolitan Thames Valley Housing has sold its minority stake of the portfolio to Greystar in an announcement made today (16 December 2021).

“Demographic trends and a severe structural undersupply of housing is driving demand for high quality rental homes in the UK, so this remains a high conviction investment strategy for Greystar. We have a highly successful relationship with ADIA in the Netherlands and now have a unique opportunity to create a rental housing portfolio of substantial scale in London and its surrounding commuter towns. The Fizzy transaction provides us with day one access to eight operational assets and a host of new team members that we are pleased to welcome to Greystar. In addition, we will grow the portfolio through our newly formed partnership with ADIA from the ground up.”

Mark Allnutt, Senior Managing Director – Europe, Greystar