Greystar holds final close of GEPE I discretionary European residential fund

Greystar holds final close of discretionary European residential fund - GEPE I, with equity commitments from new and existing investors.

Exterior view of Canvas Bristol by Greystar - seed asset of GEPE I | BTR News
Exterior view of Canvas Bristol by Greystar - seed asset of GEPE I.

Greystar Europe Investment Management B.V. (the Manager) announces the final close of Greystar Equity Partners Europe I (GEPE I / the Fund) at €1.55bn. The Manager is a subsidiary of Greystar Real Estate Partners, LLC. GEPE I is a discretionary close-ended, pan-European value-add fund focused on rental residential real estate. The Fund received equity commitments from a diverse group of global institutional investors – including both existing and new relationships to Greystar. The Fund held its first close in May 2021, surpassed its original equity target of €1bn and was oversubscribed.

GEPE I will focus on the acquisition and select development of purpose-designed, thoughtfully amenitised rental apartments, student housing and young professional accommodation in Europe’s major cities. It will capitalise on the significant opportunities created by urbanisation trends in major European cities, where a growing cohort of renters’ face both a significant undersupply of quality housing and a lack of professional management. 

“GEPE I follows the formula of Greystar’s long history of value-add strategies in the US. We are pleased to welcome existing and new capital partners from across Europe, Asia-Pacific and North America to the Fund and are excited at the opportunity to grow our portfolio with their support. The total capital raised not only reflects the institutional demand for European rental residential real estate, but also the strong track record and reputation Greystar has built in delivering great outcomes for our investors.”

Wes Fuller, Executive Managing Director – Global Investment, Greystar

GEPE I has committed over €770m in equity to date across closed and identified assets less than a year into its investment period, with an additional c. €220m in assets under exclusivity. The resulting portfolio spans 22 assets in six countries and comprises over 11,000 units/beds in total. 

Greystar, which has experienced local teams in their target cities across Europe, will employ its proven value-add strategies of off-market sourcing, capital improvements, asset repositioning and operational enhancements to deliver value across the GEPE I portfolio.

“Over the last seven years we have grown to become one of the largest vertically integrated residential platforms in Europe with over €8bn in AUM and more than 750 team members. To do this, we leveraged nearly 30 years of global experience in rental housing. However, the key to our success is having local teams who ensure we source the right deals and tailor our product to the needs of renters in each city. GEPE I gives us significant discretionary capital to continue this journey of expansion in order to provide a new standard of accommodation and service to the European rental market.”

Mark Allnutt, Senior Managing Director – Europe, Greystar