Could you start by introducing yourself and sharing a bit about your role within Greystar’s European Investment team?
I am a Senior Director in the Investment team at Greystar, leading our efforts in the Nordics. I am a Swedish national, based in London, which serves as Greystar’s International Headquarters. I previously worked in our Global Investment team, which enabled me to gain experience working across various European jurisdictions and strategies as well as teams and functions within Greystar globally. Prior to my time at Greystar, I worked at Castleforge Partners, a real estate private equity fund in the Value-Add space, also based in London focussing primarily on office refurbishments and smaller residential investments across the UK and Continental Europe. I made the move to London back in 2017, together with the investment manager Brunswick Real Estate, which was looking to expand their business beyond the Nordics. At Brunswick, I was working as an Analyst doing direct real estate lending through their private debt fund as well as more conventional equity real estate deals.
Greystar recently acquired 1,800 PBSA units in Denmark. What was your role in this transaction and were there any important takeaways?
It was Greystar’s first investment in the Nordics and the result of excellent teamwork. It was a large and complex deal in a new market for us which required input from all business functions here at Greystar. I originated the deal after monitoring the Danish market for several years and ultimately acted as our investment lead through to closing. There were several important takeaways from this deal. One that comes to mind is the importance of understanding your market and forming a narrative around the deal. The investment rationale should always be clear and ‘top of mind’ throughout the process to not lose track of the ‘why’. Another one would be perseverance. Sometimes the most difficult deals turn out to be the best ones!
In your view, what differentiates PBSA from other real estate asset classes, and how does Greystar create value in this sector?
Like multifamily, there is a huge lack of supply for student accommodation across most of Europe. PBSA is more operational than conventional multifamily housing and as such, requires a more ‘hands-on’ approach. This is where Greystar can create value from being a ‘best-in-class’ operator with extensive experience from developing, investing in and operating one million apartments and student beds across the globe. It differs from many other asset classes which are more ‘passive’ in nature.
What are your views on PBSA and its opportunities across Europe?
Rental housing more broadly as a real estate asset class presents a massive investment opportunity in Europe. It is decades behind the more mature US markets, where institutionally owned and professionally managed apartments are a well-established sector to invest in. Student housing has the same underlying fundamentals but with the added operational component. This has historically put off large institutions in times when office and retail were the ‘go-to’ sectors. The combination of institutional capital increasingly moving towards the space and the strong underlying asset fundamentals create a great investment opportunity.
Do you foresee any other growth opportunities in existing and new markets?
There is plenty of room to grow, both in existing and new markets. There are different ways of doing so but in our case most likely a combination of doing ‘more of the same’ in the markets we are already in and continue to like, as well as expanding into new markets, such as the Nordics, when the opportunity is right! Other avenues could be investing across the capital stack, which is something Greystar does globally but not yet in Europe.
