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 $220bn of real estate in more than 210 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 US, managing more than 748,000 units/beds, and has a robust institutional investment management platform with approximately $45.1bn of assets under management, including over $21.3bn 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.
RESIDENTIAL: Greystar’s forecast for residential housing remains constructive across global markets. Despite increased attention on the rental housing sector from institutional investors in specific markets like the US, 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 population growth, urbanisation and smaller households, 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.
Multifamily and student housing are especially compelling in Europe given favourable demographics, supply constraints and a highly fragmented rental housing market. Given an existing and growing shortage of attainable housing across key cities in Europe and a near complete absence of institutional-quality apartments developed and operated by professional and long-term owners, attractive opportunities exist to invest capital in new developments across all sectors of rental housing. Additionally, there are pockets of opportunities to acquire existing housing stock in countries like the Netherlands, Germany and Spain that may offer attractive returns through re-positioning and operational optimisation. As home prices continue to rise making homeownership unattainable for a growing percentage of the population in most prime European cities, consumers are looking for alternative housing solutions that suit their evolving needs. These persisting demand tailwinds and continued pressure on homeownership help foster a favourable demand backdrop that should produce healthy positive operating performance and capital growth into the foreseeable future.
Investment principles & strategy
With over 28 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 strategy in the United States in selected cities across Europe, Asia and Latin America by building a blue-chip organisation that will be the market leader of rental housing globally. Institutional capital highly desires income-producing residential property, especially in Europe, where markets lack ample supply of assets and sophisticated operators. As a result, the market opportunity is reminiscent of the multifamily industry in the US when it was in its infancy, and few sophisticated companies focused on the industry. Greystar’s time-tested expertise across its three business lines is unrivalled in Europe and represents a massive competitive advantage on which it is capitalising. Greystar has invested significant resources in its expansion in the UK and also across continental Europe as it strategically positions itself. 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