Greystar has added more than 1,000 build-to-rent beds to its pipeline with new schemes in Spain and Australia.
The BTR developer-investor-operator has boosted its portfolio in Spain to €1.2bn (£1bn), with the acquisition of a 455-flat scheme in Madrid.
The deal with developer Acciona is the first for Greystar in Spain under the pan-European value-add strategy unveiled this summer.
Greystar raised €725m in the first close of the flagship fund in June, and expects further capital commitments bringing this to €1bn, targeting investments in the UK, Netherlands, Spain, Ireland, France, Germany and Austria.
Construction on the Madrid scheme is expected to begin in the second half of 2022 and on completion the scheme will be added to the value-add portfolio, alongside recent schemes in the UK and the Netherlands.
Greystar also owns other BTR projects in Madrid, through other vehicles, and currently has 2,500 rental units in Spain.
Juan Manuel Acosta, managing director for Spain at Greystar, said: “In our view the Madrid rental market is recovering rapidly after the pandemic and there are hardly any residential sites for new construction, which lays the groundwork for excellent fundamentals for this asset.
“This transaction not only reflects our growing interest in the burgeoning build-to-rent sector but extends our commitment to the Spanish market.”
Greystar has also secured planning consent for the largest build-to-rent scheme in Australia, with a 625-bed development in Melbourne, working in partnership with Fender Katsalidis.
The project is located in the suburb of South Yarra, next to the station with fast links to the city’s CBD. Development will see two towers of 31 and 21 storeys, and a combined basement offering almost 26,000 sq ft of commercial and retail space.
Chris Key, managing director for Australia at Greystar, said: “This project is not just the largest development of its kind, but it is an important step in increasing the diversity of housing choice in Australia.
“While build-to-rent is an emerging housing product in Australia, we believe it is simply a matter of time before this residential sector gains a foothold as a primary investment allocation for institutional investors in the Australian market.”
The project is backed by the AU$1.3bn (£730m) Greystar Multifamily Venture I, which aims to develop 5,000 homes using funds from Ivanhoe Cambridge and APG Asset Management, among others.
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