Greystar and PSP Investments were advised by Eastdil Secured, LLC and Jones Day. Legal advisor for PSP Investments was Linklaters LLP. Allianz was advised by Savills and Herbert Smith Freehills in the transaction.

Greystar will continue to manage the Chapter portfolio, which currently comprises 5,100 student beds in 10 central London locations, including Aldgate, Islington, King's Cross, South Bank and Spitalfields. Chapter White City in west London and Chapter Highbury II in north London—the two newest additions to the Chapter portfolio—will launch in September 2018.

Bob Faith, founder and CEO of Greystar, said of the joint venture partnership's formation, “This partnership marks an important step in the rapidly growing institutional-grade rental housing and student accommodation investment market in the UK. We are excited to partner with PSP and Allianz on this exciting endeavor. We have a hugely ambitious target to scale the business to secure major operational efficiencies. This joint venture means we're now in a strong position with tremendous financial resources to realize Chapter's potential.

He adds that London's housing market is currently under enormous pressure and student housing accommodations in prime locations are highly constrained. “London is a global leader in higher education attracting students from around the world and Chapter is well positioned to provide quality housing in prime locations,” he adds. “We have built Chapter into a strong brand, which students and parents from around the world trust to provide a safe and secure home while they are pursuing their studies.”

Since entering the UK market in 2013, Greystar has built up a property portfolio worth £4.5 billion, representing more than 32,000 units comprised of both student housing and multifamily rental properties. In addition to being an investor and operator of Chapter, it is also a shareholder in student accommodation provider iQ.