Greystar is a leading fully vertically integrated residential real estate company offering expertise in investment management, development and property management of rental housing properties – multifamily, corporate housing, student housing and senior living – globally. Greystar’s vertically integrated business model utilises national platforms and access to local market knowledge to source and execute attractive investment opportunities in the rental housing sector. This extensive operating platform allows Greystar to maintain a stable presence in multiple geographies through all phases of economic cycles.
Headquartered in Charleston, US, Greystar manages and operates an estimated $150bn of real estate in over 185 markets globally including offices throughout the United States, UK, Continental Europe, Latin America, and Asia-Pacific. Greystar is the largest operator of apartments in the US, managing more than 500,000 units/beds. Affiliates of Greystar also host robust investment management platforms dedicated to managing capital on behalf of a global network of institutional investors with approximately $35.8bn of assets under management and over $13.9bn of assets under development.
Greystar was founded by Bob Faith in 1993 with the intent to become a provider of world-class service for rental housing. By adhering to its core values – Integrity, Respect, Professionalism, Accountability, Service, and Teamwork – Greystar continues to innovate and create solutions that help it to fulfil its mission. Please visit www.greystar. com for more information.
Residential: Greystar’s forecast for residential housing remains constructive across global markets. Despite increased attention on the multifamily sector from institutional investors in specific markets like the United States, Germany, and Japan, the long-term multifamily outlook remains positive as many developed markets continue to wrestle with demand-supply housing imbalances. These favourable tailwinds are further supported by a global shift toward more service-based economies driving urbanization and requiring more efficient land use and higher density housing that multifamily offers. Concurrent with these drivers of multifamily demand, global consumers are increasingly preferring the flexibility and benefits provided by multifamily housing such as on-site amenities and 24-hour services. Together, these secular trends have resulted in growing demand for rental housing globally.
The multifamily sector is gaining momentum in Asia Pacific given a variety of opportunities with different risk/reward profiles. Specifically, in China and Australia there is a complete absence of institutional-quality apartments providing attractive opportunities for development and repositioning, whereas in Japan there are opportunities to acquire existing assets with stable cash flow and debt spreads that provide attractive leveraged equity returns. Urbanisation continues to provide support for the demand growth. With tight housing policies and unaffordable home ownership costs in many major cities such as Shanghai and Sydney, multifamily is increasingly becoming an alternative housing option for consumers. Policies favouring multifamily solutions are being adopted by governments to address the affordability concerns. Greystar expects to leverage the global operational experience to capitalise on the institutionalisation of the multifamily sector.
Investment principles & strategy
With over 25 years of experience investing in residential rental housing, Greystar has developed a successful investment approach focused on identifying and executing opportunities that seek to drive value at the property-level. Proven purpose-built rental design and operational excellence lead to a premium over market rents, often above-inflation growth, while offering security of income and a lower volatility outcome. Greystar continually seeks to deploy capital in markets with strong fundamentals while executing the investment strategies it has agreed upon with its capital partners. These strategies benefit from the company’s extensive information networks and relationships, including property management clients, lenders, developers and institutions to identify investment opportunities. Greystar’s vertically integrated, global platform is well-suited to source off-market opportunities and quickly analyse, underwrite and execute on single-asset acquisitions and developments, as well as large portfolios.
Greystar believes that compelling opportunities typically include characteristics that fit within the following profile: (i) assets in attractive locations within high-barrier-to-entry submarkets in a strategy’s target markets that are poised for outperformance due to strong residential fundamentals; (ii) assets that exhibit potential for operational improvements leveraging Greystar’s property management expertise and scale; and (iii) assets that display upside potential through executing Greystar’s historically proven capital renovation programme.
Strategic corporate development
Greystar has replicated its investment strategy from the United States over to selected cities in Europe, Asia and Latin America by building a blue-chip organisation with the aspiration to be the market leader of rental housing globally. In 2017, Greystar established an Asia-Pacific platform with the intention of becoming the pre-eminent, vertically integrated owner and operator of rental residential assets in the region. Greystar has established offices in China and Australia, where the multifamily supply and demand fundamentals are favourable and development of purpose-built multifamily provides an early mover advantage for strong returns that leverage Greystar’s 25-year history in rental housing. Further, Greystar will open its first office in Tokyo in 2019 to take advantage of the largest established institutional multifamily market outside of the US.
Greystar’s investment process is supported with data from Greystar’s global portfolio and local market data from properties under management. Access to proprietary data enables Greystar to build operating budgets, evaluate investments and optimise property design with a high degree of accuracy, augmenting our investment capabilities. The local investment team has developed extensive relationships in the market that provide access to an attractive pipeline of investment opportunities. By leveraging Greystar’s vertically integrated platform, our local development and investment teams have extensive support resources across the Greystar Real Estate Services platform.
Greystar expects to continue delivering industry leading service to its capital partners, clients and tenants it serves as it expands its Asia Pacific presence. Greystar’s investment management and development businesses are expected to grow as investors increasingly allocate capital to specialist operators in an effort to mitigate burdensome fee loads and providing direct access to their deep local market expertise. Greystar will continue to offer strategies across the risk spectrum and tailored to the needs of its partners and clients. The company has been keenly focused on building local platforms by exporting its culture and its investment management, development and operational expertise in the student, multifamily, corporate and senior housing market segments.
The information contained in this document is provided as of the date above, unless noted. This document does not constitute an offer to sell or a solicitation of an offer to buy any securities. Any such offer/solicitation can only be made by the applicable offering documents furnished to qualified investors in jurisdictions where permitted by law. Any opinions, forecasts, projections or other statements, other than statements of historical fact, that are made in this document are forward-looking statements. Greystar gives no express or implied representation or warranty, and no responsibility is accepted with respect to the adequacy, accuracy, completeness or reasonableness of any information set out in this document, and nothing contained herein shall be relied upon as a promise regarding any future performance.