US build-to-rent giant Greystar Real Estate Partners has raised €725m (£623m) in equity for its flagship pan-European value-add residential fund at first close.
The closed-end vehicle is targeting €1bn of equity commitments into rental housing investments in the UK, Netherlands, Spain, Ireland, France, Germany and Austria.
Greystar Europe Investment Management, the vehicle’s manager, said it secured the equity from a mix of global institutional investors from continental Europe, the US and Asia Pacific.
The fund primarily focuses on the acquisition and development of rental residential assets, including multifamily and purpose-built student accommodation.
Greystar highlighted that the Europe multifamily and student housing sectors were “characterised by limited supply of quality rental housing”, which had intensified with “continued urbanisation trends in Europe’s top cities and the increasing unattainability of home ownership”.
Mark Allnutt, senior managing director for Europe at Greystar, said: “This opportunity is the culmination of more than seven years of hard work establishing the only vertically integrated pan-European residential platform, which means we have the capabilities to invest, develop and operate assets under one roof.
“We are therefore uniquely placed to offer simplicity and scale to investors seeking European residential exposure. Further, we are excited to take advantage of a market where demographic trends combined with the structural undersupply of housing is driving demand for high-quality rental properties across Europe.”
Wes Fuller, executive managing director for global investment at Greystar, said: “The investment opportunity in European rental housing is extremely compelling. We have an experienced and talented European team located in the cities where we have the highest conviction.
“The flagship strategy in Europe follows a successful track record of European value-add investments and follows the formula of Greystar’s long history of value-add acquisition strategies in the US.”
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