After being unable to monetize the other properties and assets, The Ministry of Defence has decided to say goodbye to two students´residences in Madrid and Barcelona. In order to achieve that, the minister Pedro Morenés had called up a public tender in which fund management Azora won and obtained administrative concession for both centers for next 50 years.
(…) The portfolio is one of the most acutely affected by reductions (30%) during the recession and due to the fact the minister decided to sell the buildings and the plots belonging to them, and expects to raise up to 500 million Euros.
(…) With help of the investment fund EnCampus, (…) Azora was awarded the renovation and management of the centers. The transaction will take an investment of 16 million Euros for the buildings´ redesign and commercial use reorganization before September 2015, before the academic year starts.
After imposing the fund Oaktree in the process, the management company founded by Fernando Gomucho and Concha Osacar will involve in the project Resa company. It is its main shareholder and has acquired from the firm 25 students´residences so far. Thanks to that company, Azora is the biggest university accommodation operator in Spain, with more than 8.000 places in Madrid, Catalonia and the Basque Country.
The purchase of the students´residences from the Ministry of Defence will allow Azora to add a business of 425 students of the military unit. According to its offer, the unit will enjoy special prices of accommodation service and full board, with two types of tariffs: 485 Euros/month for a double room and individual normal one and 686 Euros/month for an individual large room.
(…) Through its fund Azora has invested between the end of 2012 and in 2013 by now about 100 million Euros for university units (…) in Madrid, Barcelona and Valencia.
Source: Cinco Días