'We intend to build the leading rental residential company” within the region's major cities, says Faith.
CHARLESTON, SC—Greystar Real Estate Partners plans to branch out into Asia multifamily in collaboration with Macquarie Capital, the corporate advisory, capital markets and principal investing arm of Macquarie Group. The two companies said Tuesday they have signed a letter of intent to jointly form and capitalize a new Asia-Pacific rental housing platform, which would be known as Greystar Asia-Pac. Deal terms were not disclosed.
The proposed joint venture between Greystar and Macquarie Capital would be Greystar's and the two companies' exclusive platform in the rental residential space in the Asia-Pacific region. Initial investment opportunities are being evaluated and anticipated to include assets in the Tokyo, Beijing, Shanghai, Sydney and Melbourne markets.
Greystar Asia-Pac plans to raise institutional capital to acquire, develop, reposition and manage rental residential assets across the region. Outside its US base, Greystar already has operations in the UK, Europe and Latin America, and has had a longstanding advisory relationship with Macquarie Capital.
“My original vision when starting Greystar in the early 1990s was to build a blue chip company that could help professionalize the rental housing industry for institutional capital in the US,” says Bob Faith, Greystar's founder and CEO. “We view our opportunity in the Asia-Pacific as a natural extension of our original strategy and believe a partnership with Macquarie provides valuable regional experience and expertise. We intend to build the leading rental residential company within the major cities of the region.”
Chris Green, global head of real estate at Macquarie Capital, cites his firm's longstanding relationship with Greystar, which has included serving as adviser and placement agent to Greystar on its Greystar Urban Growth Venture, which currently has US$421 million in committed capital. Macquarie Capital also advised Greystar and partner Goldman Sachs on the 2013 acquisition of a 21-property student housing portfolio in the UK.
“We continue to see deep demand from global institutional investors for multifamily and student accommodation real estate, and believe a combination of Greystar's residential expertise and Macquarie Capital's Asia-Pacific strength will be a successful platform,” says Green.
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Paul Bubny
Paul Bubny is managing editor of Real Estate Forum and GlobeSt.com. He has been reporting on business since 1988 and on commercial real estate since 2007. He is based at ALM Real Estate Media Group's offices in New York City.
