Temprano Capital Partners Acquires a New Site for a Student Residence in Madrid

17 June 2019 – Press Release

The new project, which forms part of the Temprano Student Living (TSL) initiative, will provide 10,000 m2 of premium accommodation for more than 400 students. This project represents Temprano Capital Partners first scheme in Madrid and its eleventh Student Residence development in the Iberian Peninsula.

Temprano Capital Partners has just acquired a new site in Getafe, Madrid. It is the firm’s first student residence project to be developed in Spain’s capital and the eleventh in Temprano Student Living (TSL) Iberian’s  pipeline.

The first TSL project to complete was TSL Marques de Pombal in Lisbon, which opened its doors to students in January 2018 and won the award for “Best in Class for Property Innovation and Sustainability at the Class” given by The Class of 2020 annual awards for its good work in innovation and sustainability.

By adding this new student residence in Madrid, TSL will increase the number of beds in its portfolio to more than 4,000. The city of Madrid has the largest number of students in Spain followed by Barcelona, Valencia and Bilbao, respectively. More than 300,000 students are enrolled in the region in the 2018-2019 academic year, of which 196,400 attend public universities with the remainder at various private educational institutions around Madrid.

The large student population in Madrid includes a large contingency from other regions of Spain (approximately 80,000 according to internal research) and approximately 24,000 international students principally Europeans and from the Americas.

The recently acquired site is located at Calle Ramón Rubial 37, Getafe, which is an 8-minute walk from the main campus of the Carlos III University and a 10-minute walk from the railway station Las Margaritas Universidad.

It is envisaged that the student residence will provide some 400 beds in a combination of cluster, studio and twin room configurations, within a building spanning just over 10,000 m2. The residence will provide other services and amenities, such as a gymnasium, lounge club area, audio visual / cinema rooms, library, study rooms and areas created for group work, dinner party rooms and onsite catering and restaurant facilities. The residence will offer rentals to be fully inclusive with 24/7 concierge service. Rooms will provide kitchens, individual bathrooms, Smart TVs, in addition to desks for in room study needs. High speed Wi-Fi will be provided throughout the project.

Original story: Press Release

Edited by: Carmel Drake

Amro Plans to Invest €500M to Reach 5,000 Beds in Spain & Portugal in 3 Years

18 June 2019 – Eje Prime

Amro Real Estate Partners is planning to invest €500 million to grow its portfolio of student beds in Spain and Portugal to 5,000 over the next 3 years.

The British company, which specialises in investing in and managing student halls is going to undertake the investment in partnership with a family office whose name has not been disclosed. It plans to accumulate between 10 and 15 halls of residence by 2022.

In this vein, the company has just purchased its third asset in Spain, a plot of land with a buildable surface area of 6,000 m2, which will house 229 beds, in the Teatinos neighbourhood of Málaga. Work will start on the construction of that hall of residence in Q1 2020 with completion scheduled in time for the academic year commencing September 2021.

Amro’s two existing assets in Spain are under development and include a hall of residence in Granada, which will contain 354 beds with a buildable surface area of 11,300 m2, and a student hall in Sevilla, which is going to have 341 beds and a buildable surface area of 9,172 m2.

Original story: Eje Prime (by Marta Casado Pla)

Translation/Summary: Carmel Drake

US Firm Valeo Groupe Wants to Build 20,000 Beds in Student Halls in Spain

11 June 2019 – Cinco Días

After teaming up with Bankinter to invest in Spain last year, the US firm Valeo Groupe has now announced that it wants to become the market leader in the student residence sector. According to its CEO for Europe, Peter Haspel, “Our objective in Spain is to reach 20,000 beds”.

The firm does not have a detailed timeframe at this stage but its target would make it the market leader or one of the largest players in the country, alongside Resa, which currently has 10,000 beds, and Nexo Residencias, which is growing rapidly. Haspel considers that Spain has the capacity for 500,000 beds compared with the existing supply of 98,000.

The company has already designed a first investment plan amounting to between €300 million and €400 million to build 10 halls of residence in Spain and Portugal over the next two or three years.

It has already started work on a project in Granada and is about to launch one in Porto. They will be followed by new halls in other major cities such as Madrid, Barcelona, Lisbon, Valencia, Sevilla and Bilbao.

Original story: Cinco Días (by Alfonso Simón Ruiz)

Translation/Summary: Carmel Drake

Invesco, GSA, Amro & Bankinter are Committed to the Student Hall Sector

6 April 2019 – Expansión

Halls of residence for students have become one of the most sought after assets in the real estate sector in recent years. The demand for beds (which far outstrips supply), the growth forecasts for the market and the lack of suitable supply for the new requirements of the market has led operators and investors to get involved in the promotion and development of new halls of residence.

Four of the largest investors are planning to spend €1.5 billion in the sector over the next few years, as follows:

GSA, which arrived in Spain in 2017, with the purchase of 3 halls of residence from Oaktree, wants to invest €500 million in Spain and Portugal to grow a portfolio of 15,000 beds. It already has four centres in operation and plans to open two more in Barcelona soon.

Meanwhile, Invesco has teamed up with Syllabus, the subsidiary of Urbania, to invest €250 million in new halls of residence with the aim of adding 2,000 beds in Spain and Portugal; and that figure could rise to 3,500.

In addition, the British firm Amro Real Estate is looking to invest €300 million in 5,000 new beds across Spain and Portugal and has just closed its first investment in Granada, where it will build a hall of residence with 360 beds.

Finally, Bankinter has launched a private equity fund to invest between €300 million and €400 million in the construction of student halls across Iberia; its first project will also be in Granada.

The future is bright for the growth of this segment.

Original story: Expansión (by Rebeca Arroyo)

Translation/Summary: Carmel Drake

The Hatchwell’s Socimi Excem Plans a €300M Capital Increase

18 March 2019 – El Confidencial 

The Socimi Excem, which is linked to the Hatchwell family, considers that its particular business model is immune to the new Rental Act. The company specialises in the rental of shared flats to university students and young professionals. As such, its clients are not subject to some of the aspects of the new legislation that are causing the most concern, such as the new contract terms (five or six years) or the limits on avals and guarantees.

Each young person pays the Socimi an average of €600 per month by way of rent and typically stays in the property for less than a year. That allows the vehicle to generate a gross return of 7.46%.

Moreover, in Spain, around 400,000 students have to find accommodation every year and 85% of them want a shared flat, rather than a hall of residence. As such, Excem is convinced that it needs to expand its business model across Spain and, to this end, is planning to undertake a €300 million capital increase this summer to finance that expansion.

Currently, Excem has 42 flats comprising 288 rooms, spanning a residential surface area of 8,000 m2. The company wants to expand to Barcelona and Valencia first, although it also has cities such as Málaga, Sevilla, Bilbao and Vigo on its radar. The aim is to grow the portfolio to include 4,000 beds across the whole Peninsula.

Original story: El Confidencial (by Ruth Ugalde)

Translation: Carmel Drake

The Student Hotel to Invest €110M in 2 New Mixed-Use Student Halls/Hotels

15 March 2019 – Eje Prime

The Student Hotel is going to invest €110 million in order to open two new mixed-use student halls/hotels over the next few years in Madrid and Barcelona.

The first, located in a former print house at number 28 Cuesta de San Vicente in Madrid is expected to open in September 2020 following a €60 million purchase and renovation project. Once completed, that property will have approximately 340 rooms, a parking lot, a coworking office space and common areas including a lounge bar overlooking the Royal Palace.

The second, located on Calle Provençals in Barcelona, in the heart of the 22@ district, is scheduled to open in January 2021, following a €50 million investment. It will comprise around 300 bedrooms, a coworking office, common areas as well as a cocktail bar on the rooftop.

TSH is launching a new operating model for these properties, which combines short term lets with accommodation for students. The mixed-use aspect of these building means that between 45% and 50% of them will be used for student residences and the rest for hotel purposes, which will offset the seasonality of the two models.

Besides the two openings described above, TSH is also considering opening other hotels in Valencia, Málaga, Sevilla and País Vasco, in Bilbao and San Sebastián.

Original story: Eje Prime (by Marta Casado Pla)

Translation/Summary: Carmel Drake

Xior Buys Campus Diagonal Hall of Residence from Life for €25M

13 March 2019 – Idealista

The Belgian student hall operator Xior has reached an agreement with Life, the firm specialising in the development of rental assets, to take control of the UPC Campus Diagonal-Besòs hall of residence project. The deal still needs to be approved by the Town Hall of Barcelona and has involved an investment of more than €25 million.

Once completed, the hall of residence will have a surface area of 6,000 m2, distributed over eight floors, with capacity for 300 beds. Life has invested €14 million in the project, which has a land concession for the next 50 years (until 2067) and which is expected to open in time for the 2019-2020 academic year.

The building will be equipped with common areas, such as a music room, a gym, a cafeteria, a restaurant and bicycle parking. It will have plenty of natural light, be surrounded by garden areas and it will have a swimming pool.

Original story: Idealista (by Custodio Pareja)

Translation: Carmel Drake

Collegiate Seeks Funding of €2bn to Build More Student Halls in Spain

12 March 2019 – Idealista

Collegiate, a global leader in the student halls sector, is looking to raise €2 billion to grow its portfolio of halls of residence in countries such as Spain, the UK and Portugal.

The company, which already manages more than 20 developments in the United Kingdom and across the Iberian Peninsula, typically invests between €35 million and €100 million per asset, and so the company could be looking to open up to 60 new halls of residence if it obtains the aforementioned funding. Collegiate is looking to meet an unprecedented demand for high-end student accommodation.

In 2018, the student hall sector in Spain received investment of €450 million, up by 2.3% YoY, according to a report from DBK. Across the country, there were 1,025 halls of residence last year, containing 91,066 beds, a figure that is expected to rise to 95,500 beds by 2020.

Original story: Idealista (by Custodio Pareja)

Translation/Summary: Carmel Drake

DBK: Investment in Student Residences Rose to €450M in 2018

26 February 2019 – La Vanguardia

Investment in student halls continued to rise to reach €450 million in 2018, up by 2.3% YoY compared to 2017, according to a sectorial report from DBK.

For DBK, “the increase in supply and the favourable environment allowed sustained growth in revenues”. At the end of 2018, there were 1,025 university residences and colleges in operation in Spain, with 91,066 beds (…).

In terms of the total supply, an increase of 1,361 units was recorded in 2018, which, according to DBK “prolonged the trend of significant growth seen in previous years”. In fact, the supply grew by 3,023 beds between 2017 and 2018.

Looking ahead to the period 2019-2020, DBK expects revenues in the sector to increase by around 5% p.a. (…).

It also expects projects to open new residences to follow a moderate growth rate in terms of the number of places for the next two years. Thus, it expects the total national capacity to exceed 95,500 beds by 2020, 4,500 more than in 2018.

Original story: La Vanguardia 

Translation: Carmel Drake

Barcelona Gets Ready for the Residential Equivalent of Coworking: ‘Coliving’

29 January 2019 – Idealista

Whilst last year, coworking was one of the most repeated words, this year, it seems that the residential equivalent is on everyone’s lips, specifically, the new formulae for housing, ‘coliving’. So much so that Barcelona is already preparing to receive the first operators: the Consortium of the Zona Franca, a public entity tasked with the economic revitalisation of the city of Barcelona and its metropolitan area, is already managing licences to open the first coliving centres in the La Marina neighbourhood.

Although the names of the firms that are going to make their debuts in Spain under this model are unknown for the time being, sources in the sector say that they have already started to process the first permits for projects that are in an initial phase. “Just like coworking has become a successful phenomenon for the office market in Spain over the last 2 years, so professionalised coliving wants to follow in its footsteps and try its luck in the residential market”, explain sources at the real estate consultancy firm Forcadell.

“The large international investment funds, in their search for alternative assets that offer higher returns, are studying the Spanish market to implement this model, which has already proved successful in other countries such as the USA, Germany, the UK and Japan (Tokyo)”, say the sources at Forcadell.

With their arrival, these operators will professionalise a common practice in Spain of house sharing, by adding sophisticated aspects more typical of student halls. The coliving projects that have been developed to date comprise complexes with bedrooms and individual bathrooms on the one side and large common areas with movie theatres and games rooms (with ping pong, pool. etc.), libraries, gyms, restaurants and swimming pools, amongst others, on the other side.

According to Toni López, Partner at Forcadell and Director of the company’s real estate area, “the millenials have changed the way of consuming and have championed a change of thinking around property ownership, experience and use; it is logical and inevitable that this trend will expand to the real estate sector”. They are a generation that values experiences and seeks to optimise resources to the max, paying only for the use and experience of an asset, without incurring the cost and hassle involved with its ownership.

Medici and Corestate, the first brave players

Medici and Corestate have become the first groups to look closely at Spain for their new homes under the coliving formula (…). The German company Medici has joined forces with the German fund Corestate to invest more than €1 million in the development of business across all of Europe. In the Spanish market, the company will operate under the Quarters brand and it is already negotiating its first coliving project in Barcelona (…).

Medici already has three coliving buildings in Berlin, with capacity for 45 residents and nine apartments; and two more in the USA, in cities such as New York and Chicago, where the monthly rents range between USD 1,100 (€967) and USD 1,500 (€1,320) (…).

Original story: Idealista (by Custodio Pareja)

Translation: Carmel Drake