Greystar bets on Australia with BTR and industrial strategy

Greystar Real Estate Partners continues to bet on Australia. The global residential build to rent specialist is pursuing a dual strategy, developing more BTR projects but also entering the country’s industrial real estate market for the first time.

One of Greystar’s new BTR projects in Melbourne

The group has just broken ground on a $500 million BTR project in South Melbourne and has acquired a 2,600 m2 site in Fitzroy, close to the Melbourne CBD, for an undisclosed sum to offer “an elevated experience for future residents”.

Greystar is also developing over 400 BTR units in Kensington, another area of Melbourne, as part of a plan to transform a predominantly industrial area into a mixed-use neighbourhood. Demand for high-quality rental housing in inner city areas continues to grow, according to the group, as vacancy rates across Australia’s main cities reach record lows.

Greystar has now decided to enter the industrial real estate market with a bang, with a series of five strategic acquisitions across Sydney, Melbourne and Brisbane.  The sites, to be redeveloped, expanded and upgraded, are in good locations close to motorways and transport links and are expected to be worth over A$500 million. One is close to Sydney airport and seaport.

One of Greystar’s new acquisitions in Australia

“Our growing portfolio of logistics acquisitions across Australia’s major cities represents our targeted entry into the Australian industrial sector”, said Chris Grey, Managing Director Australi, Greystar. “We maintain a high conviction view that there is significant opportunity for Greystar to grow our platform in the last mile and infill logistics sector and this series of investments here in Australia is an exciting milestone for our business. We look forward to further progressing our pipeline of projects in the space.”

Greystar has a proven track record of executing a similar strategy in the US. Its industrial platform began in 2020 and now has a £1.3 billion-strong portfolio of industrial and logistics properties, comprising 1m sqm of development and acquisition opportunities.