US heavyweight backs £140m Placefirst recapitalisation

Chicago-based GCM Grosvenor has been welcomed as a strategic investor by the rental housing specialist’s parent group, Matter Real Estate.

Headquartered in Salford Quays, Placefirst develops, owns and operates single-family rental housing across the UK.

The firm recently reported record portfolio growth, reaching 1,500 homes in April 2022, with a further secured pipeline of over 1,000 units.

Schemes include the 158-home Croal Valley project in Bolton and the three-phase West End development in Morecambe. Matter first invested in Placefirst in 2016.

As part of the equity recapitalisation, GCM Grosvenor invested on behalf of several of its investment programmes, representing a number of public and private pension plans from the US, Europe and Asia.

Newly committed capital will be used to support Placefirst’s plans to build up a 6,500-dwelling, £1.3bn portfolio across the UK.

GCM Grosvenor’s investment is the cornerstone of a broader ongoing relationship with Matter to invest in other opportunities in line with Matter’s investment strategy.

Peter Braffman, managing director at GCM Grosvenor, said: “Partnering with Matter gives us the ability to deploy capital into what we believe to be attractive investment opportunities across Europe, in sectors supported by strong social and demographic fundamentals.”

David Christie, chief executive at Matter Real Estate, said: “GCM Grosvenor’s investment in Matter is a great endorsement of our investment strategy only one year after our launch.

“They recognise us as an emerging manager with an experienced team in place. We are looking forward to continuing our strategic relationship beyond their investment in Placefirst.”