alternative Assets News: Spanish Real Estate Intelligence

ADU Submits a Bid Exceeding €100M for Valencia CF's Mestalla Plots

10 April 2019 - El Desmarque

The Cooperativa ADU has submitted a bid to Valencia CF amounting to more than €100 million for the Mestalla plots. Valencia CF was hoping for more, but this represents the best offer it has received so far and so the football club is considering it very carefully.

According to sources, ADU is the best-positioned candidate, but the club still needs to analyse the offer, including its financing terms and collection guarantees, in detail, before Peter Lim gives his approval.

ADU Mediterráneo, owned jointly by the brothers Casares and José Luis Santa Isabel, has been given permission by the club to launch an offer to determine the degree of interest from cooperative members in buying the homes that it plans to build on the site. That will be key in determining the success of the bid.

Original story: El Desmarque (by David Torres)

Translation/Summary: Carmel Drake

Greystar Invests €200M in Student Halls in Spain & Diversifies into Rental Housing

9 April 2019 - Eje Prime

Greystar is planning to invest €200 million in halls of residences for students in Spain over the next two or three years, and is also seeking to diversify into the management of rental homes.

In the student hall sector, the US firm wants to invest €200 million in the creation of 2,000 beds by 2022 and expand its presence from Madrid, Barcelona and Málaga, to other student towns.

Meanwhile, in the rental home sector, the US company already operates in ten countries around the world, where it administers more than 500,000 homes. In Spain, it plans to launch this business before the end of 2019.

Greystar specialises in the market for multi-family accommodation and halls of residence for students. The company manages 118,500 student beds around the world, of which 50,000 are in Europe.

Original story: Eje Prime (by Milana Mishchenko)

Translation/Summary: Carmel Drake

Harrison Street Joins Forces with Nexo & Injects €200m

8 April 2019 - Cinco Días

The US fund Harrison Street has just injected almost €200 million into a company owned by Nexo Residencias, with the aim of launching a growth plan. To date, the company was owned in its entirety by GSA (Global Student Accommodation), a group operated from the UK and backed by capital from Dubai. GSA purchased acquired Nexo from the fund Oaktree in 2017 for €140 million.

But now, Harrison Street has become the majority stakeholder of Nexo under a co-investment formula, which the Dubai group uses in the different markets in which it operates. Harrison Street is already the firm’s partner in several other countries and so the partnership in Spain is merely an extension of its successful relationship.

Nexo is currently undergoing a major expansion process. It is building two halls of residence in Barcelona and one in Valencia. GSA’s objective is to grow its existing portfolio of 1,500 beds to between 10,000 and 14,000 in time.

Harrison Street is a real estate fund manager based in Chicago, which has assets under management amounting to around USD 18 billion (€16 billion).

Original story: Cinco Días (by Alfonso Simón and Pablo M. Simón)

Translation/Summary: Carmel Drake