Greystar's $1.6b plunge into Australian student accommodation as Singaporeans exit

US-based property investment group Greystar, the company behind one of Australia’s biggest build-to-rent projects, has taken a dive into the local student accommodation market after forking out $1.6 billion for seven assets in five cities.

The portfolio, acquired from a joint venture between Singapore’s Wee Hur Holding and the country’s sovereign fund GIC, comprises purpose-built student accommodation towers in Sydney, Melbourne, Brisbane, Adelaide and Canberra.

The acquisition signals an exit from the Australian student accommodation market for Wee Hur after the developer sold a 49.9 per cent stake in the assets to GIC affiliate Reco Weather Private in 2022.

But it marks a debut for Greystar into the Australian student accommodation sector with the assets joining a mammoth global student real estate portfolio that totals more than 110,000 beds.

The acquisition comes just a month after Greystar officially opened the doors to its first build-to-rent (BTR) project, The Gladstone, a $500 million development at South Melbourne.

The South Carolina-based Greystar, which manages and operates close to $315 billion in real estate assets globally, plans to upgrade the newly acquired student accommodation buildings, which will be accompanied by a rebranding. Most of the properties currently carry the Y Suites brand.

“This acquisition is a pivotal step in Greystar’s Australian journey,” says Wes Fuller, Greystar’s chief investment officer.

“We are committed to delivering exceptional housing solutions that meet the needs of students while enhancing the quality and functionality of these properties.”

Greystar’s investment in the sector has been driven by strong demand amid an undersupply of “institutional quality housing”.

“By leveraging our global expertise and integrating Greystar’s operational platforms, we aim to set new benchmarks for quality and service,” says Adam Pillay, Greystar’s executive director of investment management, Asia-Pacific.

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

Greystar’s $1.6 billion investment in Australia’s student accommodation sector is complemented by a $2.3 billion BTR development pipeline which includes a second Melbourne project at South Yarra – another $500 million development that Greystar says is one of the largest BTR projects in Australia.

Greystar acquired a third Melbourne BTR redevelopment site at Fitzroy in 2022, with projects also in train for Kensington and Collingwood. The property group has indicated an ambition to also explore BTR opportunities in Sydney and Brisbane.