US multifamily specialist Greystar is introducing its first pan-Asia multifamily vehicle after launching three country-focused funds in the region.
PERE understands that the pan-Asia vehicle has a fundraising target of $1 billion and a hard-cap of $1.25 billion. With a value-add strategy, the South Carolina-based firm will invest mainly in Japan, Australia and China, where it has already had exposure. Around 70 percent of the capital raised will be invested in Japan, with up to 30 percent in Australia and a maximum 10 percent in China. In Australia, the manager may consider more tactical investments such as debt investments for the pan-Asia strategy.
Greystar sees Japan as the key geography for the vehicle because of the country’s large and liquid market, PERE understands. The firm already has exposure to Japan through its $278 million Greystar Japan Multifamily Venture I, which also pursues a value-add strategy.
The manager’s other country-specific vehicles in Asia are the 2019-vintage, $550 million Greystar China Multifamily Venture 1 and the 2020-vintage, A$1.3 billion ($934 million; €833 million) Greystar Australia Multifamily Venture 1. The two vehicles are around 85 percent and 33 percent deployed, respectively. Unlike the Japan venture, which targets existing assets, the two funds follow a build-to-rent strategy.
Both of Greystar’s Australia and China ventures are supported by the firm’s long term institutional investors. GAMV I received commitments from Dutch pension fund manager APG Asset Management, Ivanhoé Cambridge, the real estate subsidiary of Canadian pension plan Caisse de dépôt et placement du Québec and Finland’s Ilmarinen Mutual Pension Insurance Company. GCMV I was also backed by APG along with fellow Dutch pension fund manager Bouwinvest Real Estate Investors.
PERE understands that Greystar will continue to raise country-specific strategies for ground-up development across the Asia-Pacific markets.
Greystar declined to comment on fundraising activities.
Greystar made its Asia debut in 2016 when it teamed up with Macquarie Capital to form a new Asia-Pacific rental housing platform called Greystar Asia-Pac. The venture initially focused on the cities of Tokyo, Beijing, Shanghai, Sydney and Melbourne.
The following year, the firm began building its on-the-ground presence in the region with the first of three managing director hires, appointing Charles Ma, formerly the head of global strategy, investments and business development at China Vanke, as the firm’s head of China. Chris Key, previously JLL’s head of corporate finance for Asia-Pacific, was hired shortly after Ma to become the firm’s head of Australia. In 2019, the firm completed the final leg of its Asia expansion by hiring former Westbrook Partners executive Akira Kosugi as managing director to oversee the firm’s new Tokyo office.