Greystar says it has created the largest pan-European value-add residential fund, having raised €2.7bn from investors.
The US-headquartered residential specialist has held a final close for Greystar Equity Partners Europe II (GEPE II), which with debt financing is projected to have more than €6.8bn to invest in existing buildings and developments across European cities.
The fund is more than three quarters larger than its predecessor, which raised €1.5bn in 2022.
Investors from across Europe, North America, the Middle East and Asia-Pacific committed €2.2bn directly to GEPE II, while a further €550m was secured for discretionary co-investment vehicles. Greystar said commitments were anchored by sovereign wealth and pension funds, but also included first-time investments from family offices.
GEPE II is designed to invest across the rental living sector with a focus on purpose-designed multifamily and student accommodation. Key markets for the fund include the UK, Spain, the Netherlands, Germany, Austria, Denmark, Ireland and France.
More than €910m of equity has already been invested or committed across 28 investments totalling close to 13,000 homes and beds. A further €425m is associated with “advanced pipeline opportunitiesæ, Greystar said.
Greystar said the fund’s portfolio is expected to include new-generation assets with high sustainability standards and assets with attainable rents that will provide high-quality housing for the “missing middle” in an environment of increasing homeownership costs.