LONDON - Greystar Real Estate Partners, a global rental housing leader, the Public Sector Pension Investment Board, one of Canada’s largest pension investment managers, and Allianz Real Estate, the global real estate investment and asset manager, announced the completion of a joint venture partnership to grow Chapter, London’s leading student accommodation brand.
The joint venture was announced at exchange on June 22, 2018 and has now secured all regulatory approvals, thereby allowing the transaction to complete.
Allianz has acquired an interest in Chapter alongside PSP Investments and Greystar’s current stake. The equity investment volume of the transaction that Allianz Real Estate is executing on behalf of various Allianz insurance companies, stands at around £350m. The new partnership supports an expansion program targeting 10,000 student beds and doubling the size of the portfolio within five years. The partnership’s strategy is to continue to grow the portfolio through acquisitions and new developments in addition to continuing to improve the existing assets and Chapter brand.
Greystar is the global leader in the operations, investment and development of rental housing with over 435,000 units under management globally. It will continue to manage this portfolio, which currently comprises 5,100 student beds in ten central London locations, including Aldgate, Islington, King’s Cross, South Bank and Spitalfields. Chapter White City in west London and Chapter Highbury II in north London, the two newest additions to the Chapter portfolio, will launch in September 2018.
Commenting on the JV partnership on, Bob Faith, Founder and CEO of Greystar, said: “This partnership marks an important step in the rapidly growing institutional-grade rental housing and student accommodation investment market in the UK. We are excited to partner with PSP and Allianz on this exciting endeavor. We have a hugely ambitious target to scale the business to secure major operational efficiencies. This joint venture means we’re now in a strong position with tremendous financial resources to realize Chapter’s potential.
“London’s housing market is under enormous pressure and student accommodation in prime locations is highly constrained,” added Faith. “London is a global leader in higher education attracting students from around the world and Chapter is well positioned to provide quality housing in prime locations. We have built Chapter into a strong brand, which students and parents from around the world trust to provide a safe and secure home while they are pursuing their studies.”
Commenting on the JV partnership, Stéphane Jalbert, Managing Director (Europe and Asia Pacific), Real Estate, PSP Investments, said: “We are very excited to welcome Allianz, an internationally renowned and respected real estate investor, into our established and successful partnership with Greystar. Chapter is now a recognized, income-generating business and this new partnership will strengthen and grow this highly efficient purpose-built student accommodation platform. Allianz and Greystar share our long-term view and focus on high-quality assets in central London with a steady income stream. Teaming up will facilitate a period of expansion for Chapter in London.”