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Greystar enters Chilean RE market

The Charleston, South Carolina-based firm also expanded into the Asia multifamily market earlier this month.

Greystar Real Estate Partners is continuing its international expansion through a new platform to invest in Chile, the firm said Monday.

The Charleston, South Carolina-based multifamily firm closed Fondo de Inversión Credicorp Capital Renta Residencial I Chile, a fund that it created with Credicorp Capital, the investment banking platform of Peruvian financial holding company Credicorp. While terms of the vehicle were not disclosed, PERE understands that it will have about $250 million in investment capacity to develop multifamily properties in Santiago.

“The fund will focus on the development of highly attractive opportunities in the most attractive submarkets in Santiago, where we find strong fundamentals for multifamily assets,” said Eduardo Orozco, Greystar’s managing director of Latin America investments, in Monday’s statement. “Our goal is to develop the premier portfolio of buildings that will redefine the apartment for rent experience in Chile. Having a presence in the Chilean market is key to our continued growth throughout Latin America.”

The firms have not yet made any purchases with capital from the fund, but plan to close on their first acquisition in the coming weeks, PERE understands.

“The joint venture with Greystar in Chile is just the start of what we believe is a significant opportunity in the multifamily space across Latin America, and we look forward to growing this partnership throughout the entire Andean Region,” said Cristián Letelier, Credicorp’s managing director of alternative investments.

Other private equity real estate firms that recently have made forays into the Chilean multifamily market include Madison, New Jersey-based PGIM Real Estate, which started making apartment investments in the country in 2013.

Greystar manages about $14 billion and Credicorp oversees about $8.5 billion, according to Monday’s statement.

Greystar made its first international investment in October 2013 with the acquisition of a 21-asset student housing portfolio in the UK, in partnership with Goldman Sachs. Greystar entered the Latin America market in 2013 when PGIM hired the firm to operate its multifamily assets in Mexico City. Its on-the-ground presence in Mexico subsequently led to the formation of a €250 million separate account with a sovereign wealth fund to develop additional assets in the city.

“Exporting [our] expertise to other markets is how we’re going to grow globally,” Bob Faith, Greystar’s founder, said in the October issue of PERE.

Last week, Greystar said it is teaming up with Macquarie Capital to form a new Asia-Pacific rental housing platform called Greystar Asia-Pac. Through the venture, the firms plan to raise institutional capital to acquire, develop, reposition and manage rental residential assets across the region, initially focusing in the cities of Tokyo, Beijing, Shanghai, Sydney and Melbourne. Terms of the venture were not disclosed.