February 11, 2021

Greystar announces A$1.3 billion Final Close of Greystar Australia Multifamily Venture I (“GAMV I”)

The Develop-to-Core venture, with capital commitments of A$1.3 billion, will primarily focus on the Sydney and Melbourne rental residential markets

SYDNEY, AUSTRALIA – Greystar Real Estate Partners, LLC (Greystar), a global leader in the investment, development, and management of high-quality rental housing properties, is pleased to announce the final close (subject to regulatory approvals) of its flagship Australian investment vehicle Greystar Australia Multifamily Venture I (GAMV I) with total capital commitments of A$1.3 billion. In the final close, Ivanhoé Cambridge and a major European institutional investor joined founding investor APG Asset Management to establish Australia’s largest Build-to-Rent venture to-date. The partnership will work together to deliver a new generation of high quality, purpose built designed rental housing with best-in-class services and amenities to meet the rapidly evolving needs of the large rental cohort in Australia.

Mr. Graeme Torre, Managing Director, APG Asset Management Asia, said,

“We see it as simply a matter of time before the build-to-rent residential sector gains a foothold in all the key Asia-Pacific markets. So, it is no surprise to us that major investors such as Ivanhoé Cambridge have committed to the sector alongside APG in a sophisticated market such as Australia. With continued urbanisation being a key requirement if we are all to have a chance of meeting climate goals and the consequent need to provide more housing options, Build to Rent presents as an essential asset class beyond just the economics. At APG we have a strong and global conviction to this sector, and we are delighted to have these partners join with us and Greystar to cause the sector to now become firmly established in Australia.”

Mr. Adam Pillay, Senior Managing Director of Asia-Pacific for Greystar, said,

“The strong performance we have seen across our business globally, despite the challenges and uncertainty that have come with the onset of the global pandemic, has only served to reinforce our confidence, and that of our global partners, in the resilience of the rental housing sector. The strength of the national response to the pandemic in Australia, where underlying fundamentals remain attractive and the signs of market recovery are underway, underlines our conviction in the opportunity for long-term investment in institutional rental housing in this key market.”

Mr. George Agethen, Senior Vice-President, Asia-Pacific of Ivanhoé Cambridge, said,

“The importance of rental housing is a key global conviction for Ivanhoé Cambridge, and we are delighted to extend our exposure to Australia together with Greystar and APG. As an early mover in the sector, we are excited to contribute to the institutionalisation of build-to-rent in Australia, and this venture will seek to set new benchmarks in customer service and amenities provision, while offering greater peace of mind to tenants.”

Mr. Chris Key, Managing Director of Greystar Australia, said,

“The quality of rental experience that Build-to-Rent offers residents in major urban centres around the world is not on offer here in Australia today. We plan to provide future focused, next generation rental housing with an abundance of customised amenity and communal spaces that are curated to provide a world-class resident experience. These projects will be designed to align and adapt to resident needs in a rapidly changing world. Careful consideration will be given to ensure we design and create seamless connections with the surrounding neighbourhoods to support the urban future of our major cities, while fostering a unique sense of community among those living within our buildings.”

In addition to the previously announced acquisition by GAMV I of two properties for development in the inner Melbourne market of South Yarra, Greystar has also secured a second project on behalf of GAMV I in Gladstone Street, South Melbourne, part of the Fishermans Bend urban regeneration precinct. Greystar plans to commence both projects later this year with the projects having the potential to deliver over 1,300 new rental homes and create approximately 2,000 jobs over their construction phase.

“With the resources and global expertise of our trusted capital partners, we have the opportunity to deliver over 5,000 new homes for Australian renters to enjoy for many years to come. As we face a major downturn in high density construction in the coming years this partnership provides us with the opportunity to make our own contribution to Australian job creation and the economic recovery post Covid-19.” said Mr Key.

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