Greystar Makes $1.6bn Move into Aussie PBSA

US build-to-rent behemoth Greystar will pay $1.6 billion to acquire a seven-asset Australian student living portfolio from a Singapore-based joint venture.

The 5662-bed PBSA buy from Singaporean developer Wee Hur Holding and sovereign fund GIC heralds the entry of Greystar in the sector Down Under and is its largest deal in the Asia-Pacific.

As first reported by The Urban Developer in October when the deal was mooted, the portfolio comprises accommodation in Sydney, Melbourne, Brisbane, Adelaide and Canberra.

The assets are “strategically located within close proximity to leading Australian universities and the assets offer strong foundations for future enhancements”, Greystar said.

It said it planned to upgrade facilities, refresh branding and integrate its operational platforms to “elevate the resident experience”.

Greystar executive director, investment management, Asia-Pacific Adam Pillay said Australia’s student housing sector was experiencing strong demand, driven by its world-class education institutions, a growing international student population and an undersupply of institutional-quality housing.

“This acquisition allows us to deliver superior living environments while strengthening Australia’s position as a premier destination for international education,” Pillay said.

Headquartered in Charleston, South Carolina, Greystar manages and operates nearly $US315 billion of real estate in about 250 markets globally with offices throughout North America, Europe, South America, and the Asia-Pacific region.

The completion of the acquisition is expected within six months and requires Greystar obtaining approval from Australia’s Foreign Investment Review Board.

Wee Hur said that under the terms of the deal signed on December 15, it would retain a 13 per cent equity interest in the new ownership.

▲ Under new owners: The assets in the deal include this tower at Redfern.

Wee Hur began assembling its student housing portfolio in 2015 and would reinvest the proceeds in its core business as well as to expand into alternative investment and other new areas, the company said.

Meanwhile, Singapore’s CapitaLand said it would pay $200 million for property and corporate credit group Wingate as the Asian real estate manager expands into private credit.

Wingate founder and chief executive Farrel Meltzer will stand down but remain on board under the deal while Nick Jacobson, currently in control of its property business, will become the  managing director.

The purchase of Wingate, which has $2.5 billion under management, will take CapitaLand’s funds under management to $134 billion.