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