The Abu Dhabi Investment Authority and private equity firm Greystar Real Estate Partners LLC are partnering to develop purpose-built rental housing around London and its suburbs in a deal valued at 2.2 billion pounds ($2.9 billion).
Greystar also confirmed that it is buying London rental housing business Fizzy Living from Metropolitan Thames Valley Housing, according to an emailed statement on Thursday. The purchase will see the US residential real estate investor taking over the management of almost 1,000 homes.
The UK’s purpose-built rental housing market is attracting greater investor interest as a sustained lack of housing supply in the country makes renting more attractive. Those pressures are particularly acute in London and its surrounding commuter towns.
“Demographic trends and a severe structural undersupply of housing is driving demand for high-quality rental homes in the UK,” said Mark Allnutt, Greystar’s senior managing director in Europe.