Greystar Real Estate-led China fund secures first close at $450m

Pedestrians walk along an elevated walkway as an electronic ticker displays stock figures in Pudong's Lujiazui Financial District in Shanghai, China, on Friday, Dec. 28, 2018. China announced plans to rein in the expansion of lending by the nation's regional banks to areas beyond their home bases, the latest step policy makers have taken to defend against financial risk in the world's second-biggest economy. Photographer: Qilai Shen/Bloomberg

Greystar Real Estate Partners, APG Asset Management, Bouwinvest Real Estate Investors and MIRA Real Estate have announced the first close of their China-focused fund at $450 million.

According to a statement, the Greystar-led fund targets rental housing projects in top-tier Chinese markets. It has already identified its first investment in the inner ring of Shanghai, which it plans to close after accepting the latest raft of capital. Greystar’s other plans include a repositioning programme to reconfigure the asset into a rental building targeted at executives.

Wes Fuller, leader of Greystar’s global investment management business, said: “China is an extraordinarily compelling growth market for rental housing investment today and is notably lacking in quality housing for the wave of renter demand driven by the rapid growth of urban market populations and incomes. Establishing this fund gives us an early mover advantage to implement our unique investment strategy by assembling and operating an unrivaled rental housing portfolio at scale.”

Greystar added that the Chinese team is in the process of building a vertically integrated team with specialists in development, investment and operations unique to the market. The team will be locally managed but supported by Greystar’s global team, network and capital.

Brett Robson, Global Head of MIRA Real Estate, said: “There is a significant gap in the Asia-Pacific region for quality rental housing provided by specialist managers. Having worked closely with Greystar in the United States and United Kingdom over the last decade, the opportunity to work together across Asia-Pacific and introduce Greystar’s proven expertise and experience is highly compelling.” MIRA Real Estate is part of Macquarie Infrastructure and Real Assets. 

According to the statement, US-based Greystar operates about $115 billion of real estate assets in over 180 markets including the US, UK, continental Europe, Latin America and the Asia Pacific. It has an institutional investment management platform with $32 billion of assets under management, including $12 billion of assets under development.