Sareb’s Sale of Témpore Enters Final Phase with TPG as the Favourite

28 March 2019 – Cinco Días

Sareb’s sale of its rental home Socimi Témpore Properties is entering the home stretch. The bad bank has selected three candidates to pass through to the final round, all of which are US funds, namely, TPG (Texas Pacific Group), Ares and Round Hill, with the former currently the favourite.

Témpore, which is listed on the MAB, has a market capitalisation of €305 million and, according to the most recent assessment performed by Savills Aguirre Newman, an asset portfolio worth €338 million.

In just over a month, Sareb will announce the name of the winning investor, which will take ownership of the Socimi and its 2,249 residential properties.

Original story: Cinco Días (by A. Simón & P.M. Simón)

Translation/Summary: Carmel Drake

El Corte Inglés Negotitates the Sale of its Logistics Assets to KKR

1 February 2019 – Expansión

The US investment fund KKR, together with the British firm Round Hill, has launched a bid for the logistics portfolio of El Corte Inglés, which includes around thirty assets distributed all over Spain, with a surface area of more than 500,000 m2.

According to explanations provided by market sources speaking to Expansión, although there are other interested funds, KKR and Round Hill have now taken the lead in the bid for the assets, with an offer of between €150 million and €170 million. Other players that have expressed interest in this portfolio so far include the US giant Blackstone, and even the Socimi Merlin, which confirmed very preliminary conversations.

In terms of the most attractive assets in the batch for sale, there is a package of six warehouses in Móstoles (Madrid), with a total surface area of 88,000 m2, as well as a plot in La Bisbal del Penedès (Tarragona), with a gross surface area of almost 41,000 m2, which serves to support its large centre in Cataluña, located in Montornès del Vallès and which provides services to the rest of the Mediterranean arc.

Batch of warehouses

In addition, the portfolio includes warehouses, storerooms and distribution centres in logistics nuclei in Sevilla, Málaga, Valencia, Valladolid, Alicante, Murcia, La Coruña, Vigo, Palma de Mallorca, Murcia, Teruel, Cáceres and Zaragoza. On the other hand, the batch for sale does not include any of the group’s logistics gems, such as the logistics centre in Valdemoro or the platform in Montornès del Vallès (Barcelona), both of which are strategic for the company (…).

Original story: Expansión (by Rebeca Arroyo & Víctor M. Osorio)

Translation: Carmel Drake

From Greystar to GSA, a Who’s Who of Investors in Spain’s Market for Student Residences

27 August 2018

With returns of 5.5%, the student housing market has become the new El Dorado of the real estate market. A long list of foreign funds are beginning to invest in this sector in Spain, and the supply of accommodations is expected to rise by almost 10% up to 2019.

Anglo-Saxon funds and operators dominate the wave of foreign capital that is taking on the market for student residences, one that offers returns of 5.5% in Spain. Just in 2017, investments grew from 50 million to 600 million euros.

The supply of assets in this alternative market has increased by 3.5% since 2015, boasting 93,563 beds in the market at the close of last year. Forecasts expect the sector to grow by another 1.5% this year and up to 7.7% at the end of 2019, according to data from the consultancy JLL. Which are the funds that dominate the sector? And who set to join this latest rush for gold?

The high point of the new wave of international investment in Spain’s resis (student residences) was reached at the end of 2017. Until December, Resa was considered the king of the residential market for university students in the country. It was owned by for years by the firm Lazora (Azora) until the arrival of the joint venture formed by AXA Real Assets and CBRE Global Investment Partners funds, which made an offer for roughly 500 million euros. Subsequently, the company’s 37 assets, distributed among 33 buildings and four undeveloped plots of land, were taken over by the specialised operator Greystar, partner of AXA Real Assets and CBRE GI.

Greystar’s place at the top of the list remains firm, but a long list of other players are vying to take the top spot. The British operators GSA and Collegiate, and the Luxembourg fund manager Corestate all have ambitious plans for growth in Spain.

GSA will invest 300 million euros in new acquisitions in the Spanish market, as reported by EjePrime. The international student-accommodation giant expects to be managing 10,000 beds in Spain within five years’ time. For now, the company has two projects underway in Barcelona, ​​in a total investment of thirty million euros, and is already working on plans to enter the market in Madrid, as well as exploring other cities such as Salamanca along with regional capitals in the south and north of the country.

For its part, Collegiate allied itself with the Spanish group Early Capital at the beginning of the year to enter Barcelona. The operator will manage the student residences at the Finestrelles complex, in Esplugues de Llobregat, acquired by Early last autumn, its third asset after the ones it already owns in Madrid and Valencia. Now, the company is looking for opportunities in Bilbao, Malaga and Granada.

Corestate also flew in from Luxembourg. Like the more than 473,000 university students who arrive every year in the country, searching for accommodation, the fund is looking to enrol in the sector. After beginning work on its first two projects, in Madrid (inauguration in September) and Seville, it is now finalising the purchase of a plot of land on which it is to develop another 400 beds. The manager’s goal is to become one of the top three players in the sector by 2020, with more than a thousand beds spread across the country. The company is already analysing the acquisition of another half a dozen plots of land to attain the goal it set for itself.

The Student Hotel is another of the major European players that have begun to take a close look at Spain. The Dutch operator has announced plans to invest 240 million euros in Spain and has already acquired two assets in Barcelona and will debut its first project in Madrid in 2019.

The Spanish ‘resi’ listed on the MAB

Although much of the capital that is being allocated to the student residence market in Spain comes from abroad, the local players are also looking for their piece of the pie. The Lofttown and Syllabus, a specialised vehicle created by Urbania International, are two clear examples of emerging, local interest in the sector.

Lofttown started its journey in the picturesque neighbourhood of Gràcia in Barcelona. Presided over by Santiago de Cruilles, the company already has two more projects in the Catalan capital in which it invested 24 million euros, EjePrime reported. The company is also analysing a possible debut in other cities around the country, such as Madrid, Girona and Valencia.

For its part, Syllabus is already currently one of the most active investors in the student residence market. Created last April by Urbania, the vehicle expects to invest up to 200 million euros in the development of new student residences in Spain. The company hired the former CEO of Hill International, Jeffrey Sújar, and has already made its first acquisitions, in Valencia and Malaga.

In addition, the university market in Spain is undergoing such a boom that a company that focuses on the market is also listed on the local stock exchange. Student Properties debuted on the Mercado Alternativo Bursátil (MAB) last December. Currently, the company owns a single asset, located in the district of Salamanca in Madrid.

Other possible arrivals

During this year and, above all, the one that is coming, new players are expected to enter the market for university residences. On such arrival is the American giant CA Ventures, which has Spain squarely in its sights within a 500-million-euro European investment plan.

Other institutional investors that are interested in the market include the Belgian group Life, the American investment fund Round Hill and the British operator Amro. The latter is looking for a partner in the national market to invest up to €300 million to create a portfolio of 5,000 beds in southern Europe.

Original Story: EjePrime – Jabier Izquierdo

Translation: Richard Turner

 

GSA Buys Oaktree’s Student Halls In Madrid & Barcelona

21 June 2017 – Expansión

GSA (Global Student Accommodation) has reached an agreement with Oaktree Capital to purchase its student halls of residence in Spain (which are owned and operated by an entity called Nexo). This operation, whose financial details have not been revealed, comes less than a year after GSA purchased Oaktree’s platform of halls of residence in the United Kingdom, comprising 7,100 beds, back in September 2016.

Both operations have been advised by the real estate consultancy firm JLL.

Nexo is one of the largest developers and operators of student halls of residence in Spain and currently owns a portfolio of approximately 2,300 beds located in Madrid and Barcelona – split between operational assets and those under construction.

The firm has three operational halls of residence in Madrid – Galdós, with 370 beds; El Faro, with 358 beds; and Claraval, with 186 beds – as well as the Lope de Vega University Residence, also located in the Spanish capital, which will open its doors in September 2017 and which will house 468 students, from both Spain and overseas.

The operation also includes two additional projects under development in Barcelona, which will be ready for use in 2019 and which increase the total number of beds to 2,234. The first centre, Barcelona Sants, will have 348 beds and the second, Campus Sur Diagonal, will have 504 beds.

Nicholas Porter, founder and President of GSA, said that the firm is continuing to fulfil its plans for rapid expansion in Europe with its focus on higher education markets.

Interest from funds in this segment has increased in recent months. In order to benefit from this situation, Azora and Grupo March have put RESA up for sale – it is the largest student residence management platform in Spain, with 9,000 beds – and interest has already been expressed by Axa, Round Hill, the Canadian pension fund CPPIB, CBRE Global Investment and Partners Group, amongst others.

Original story: Expansión (by R. Arroyo)

Translation: Carmel Drake