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17 MARCH 2023
Grosvenor is to double the size of its indirect real estate investment business, Grosvenor Diversified Property Investments (GDPI), to approximately £1.5 billion in equity over the next five years.
Established in 2012, GDPI invests globally, alongside specialist local partners who have a clear understanding of the changing demands of real estate in their markets. By only investing Grosvenor’s own capital, GDPI can build strong alignment with these partners and has complete versatility in committing capital from the shorter, to the longer term.
This approach has seen it realise 16 investments to date delivering an average IRR of over 20% pa.
The Indirect investment business was formed to complement Grosvenor’s urban property business, which directly owns, develops, and operates properties across various property types in the UK and North America.
Today, the business operates across a broad range of sectors, including industrial/logistics, offices, and retail, as well as student accommodation, life sciences, healthcare and residential and across five continents. Its portfolio, which currently includes 13 partnerships with ca £700 million equity invested, complements Grosvenor’s £11 billion directly managed global property portfolio,
Whilst many of its partnerships are through joint ventures with local operating partners, the team also invests in funds to access specialist sector or country expertise. Current partnerships include Bridge Investment Group (US offices), Gateway Capital (Australian industrial and logistics), MedProperties (US healthcare facilities); REINO-IO (Polish logistics); and VBI Real Estate (Brazilian student accommodation).
GDPI invests with specialist property investment teams aligned with its high sustainability standards, working with those who embrace innovation, sustainability, and efficiency and whose activities have a positive impact on society. The business recently published its Responsible Investment Strategy and, in 2023, will progress the development of its net zero carbon pathway.
Chris Taite, Chief Executive, Grosvenor Diversified Property Investments commented: “Our ambitious global expansion plans will continue to pursue aligned local partnerships in growth real estate sectors with sustainability goals aligned to our own. While our mandate remains globally active, we will apply a particular near-term focus on expanding our partner network in the Asian and European markets”
Mark Preston, Executive Trustee and Chief Executive, Grosvenor added: “Over the past 10 years indirect investment has given us access to new markets and sectors – ranging from student accommodation in Brazil, medical facilities in the US and logistics facilities in Australia - diversifying our portfolio, while delivering consistently high returns. Recognising the strength of this model and the success of our team, our expansion plans will broaden our international property footprint, complementing our core direct holdings in the UK and North America.”
Mr Lane is a Senior Advisor to Morgan Stanley’s Investment Banking division and a former MD and Chairman of its EMEA real estate investment banking business and Mr Piani was previously CEO of Allianz Real Estate, the Allianz Group’s real estate and asset management investment platform.
The team has also welcomed Will Francis, Associate Director, Transactions and Jack Schembri, Analyst.
Find out more about Grosvenor Diversified Property Investments, its current holdings and partnerships here.
Within our global remit, we back specialist local property investment teams, who share our values and have a demonstrable investment track record.
By investing Grosvenor’s own capital alongside local partners who have a clear understanding of the changing demands of real estate in their markets, we aim to generate strong commercial results, while advancing our social and environmental ambitions.
Since our first partnership in 2012, we’ve successfully backed aligned, specialist, local management teams across five continents and in a broad range of sectors including industrial/ logistics, student accommodation, life sciences, healthcare, housing and offices.
We’re part of an international, privately owned organisation with a 300+ year track record of pioneering change and new ways of thinking about global investment, dedicated to delivering lasting commercial, environmental and societal benefit.
Grosvenor is an international property developer, manager and investor with a track record of over 340 years. We improve property and places across many of the world’s leading cities, promoting sustainability within the built environment and enhancing the wellbeing of our customers and communities.
Our direct property activities span the UK, North America, Asia and Europe. Meanwhile, our Diversified Property Investments business co-invests with like-minded third-party managers in joint ventures to further diversify our sectoral and regional property exposure.
We are a values-led organisation which represents the Grosvenor family. Our work in property, alongside Grosvenor’s other activities in food and agtech, rural estate management and support for philanthropic initiatives, shares a common purpose – to deliver lasting commercial, social and environmental benefit – addressing today’s needs while taking responsibility for those of future generations.