ASG Homes Acquires Former Student Residence in A Coruña

17 September 2019 – La Opinión A Coruña

The sale has been completed of a former student residence in A Coruña. The congregation of the religious order of María Inmaculada has sold the property, which spans 6,000 m2 and comprises 6 or 7 storeys (depending on where you are in the building), to the real estate firm ASG Homes Propcorp for €7.7 million.

ASG Homes Propcorp is owned by several European investors, namely: East Hampton Partners Limited (40%), headquartered in London; Fido Holding GMBH (10%), headquartered in Berlin (Germany), Caveco Investments (40%), headquartered in Madrid, and Gotrina (10%), also based in Madrid.

The group is in the process of investing the resources that it raised for its sixth fund, which amounted to €500 million in total, and the focus of its investments is now directed towards Valladolid, Zaragoza, Bilbao, Portugal… and A Coruña.

The international group specialises in the construction of residential complexes, and also promotes hotels, shopping centres and gas stations.

The property is currently divided into two halves, with the right-hand side forming the subject of the sale by the religious order; the left-hand side, which comprises commercial premises on the ground floor, offices on the second floor and private apartments on the upper floors, does not form part of the sale.

Original story: La Opinión A Coruña (by Marta Villar)

Translated by: Aura Ree

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

Temprano Capital Appoints Livensa Living to Help with Marketing, Sales & Operations

22 April 2019 – Press Release

Temprano Capital Partners, in partnership with CPA®:18 – Global and Carey European Student Housing Fund I, LP, has appointed Livensa Living, powered by CRM Students, to undertake marketing, sales and operations for their openings in 2019 in Barcelona and Porto.

Livensa Living is an Iberian based sales and marketing platform focused on student accommodation.

CRM Students is a leading, international student accommodation manager operating over 50 student residences, totalling more than 23,000 beds.

With this appointment, Temprano Capital Partners, as developer and co-investor with CPA®:18 – Global for Barcelona and Carey European Student Housing Fund I, LP for Porto, aims to provide best in class management solutions and student experiences across its growing portfolio of operating assets.

Temprano Capital Partners currently comprises a portfolio of 10 projects, either operating or under development, across Iberia’s best university cities and 3,500 rooms. It aims to double this number over 3 years.

CPA®:18 – Global and Carey European Student Housing Fund I, LP are currently developing 8,500 beds across 19 properties in Spain and Portugal.

Both projects, Livensa Living U. Porto Campus and Livensa Living Barcelona Diagonal Alto, will be inaugurated in September 2019.

Livensa Living Barcelona Diagonal Alto, acquired in 2017, benefits from a privileged location 10 minutes from UB Barcelona University and UPC via a 24/7 tram service and adjacent to the Finistrelles Shopping Centre. This location will allow the residence to address the unsatisfied accommodation needs of students studying at various universities and educational facilities in Barcelona.

The project will have 372 premium studios in a 10,500 sqm building. In addition to its superior common areas, the property has an incredible roof terrace which will include a chill-out area, a secret garden, an open-air gym and yoga space, a premium bar, an outdoor concert stage and an infinity swimming pool benefitting from amazing, panoramic views across the city of Barcelona.

Livensa Living Porto Campus, also acquired in 2017, is located on Rua Dr. Manuel Pereira da Silva in Porto. It is strategically located in Asprela´s University Campus accounting for approximately 75% of all university students in Porto. The residence is located next to the metro station Universidade making it a superbly connected site.

The project will provide 580 premium studios in a building of two wings 20,000 sqm with a large landscaped central courtyard housing a landscaped garden, a gym and yoga area, a large terrace with bar and a swimming pool.

Original story: Press Release

Edited by: Carmel Drake

JLL: 47 Halls of Residence for Students are Under Construction in Spain

24 April 2019 – El Confidencial

The student hall sector is on a roll. With almost fifty projects underway (47) and 17,500 new beds to be added to the existing portfolio by 2022, experts forecast total investment of €1 billion in the sector over the next 4 years.

In 2017, investment in the sector amounted to €560 million, ten times higher than the figure recorded in 2016 (€50 million). Last year, the number dropped to €141 million, but according to Nick Wride, Director of Living and Alternatives at JLL Spain, that was “due to a lack of residences in operation available for sale”. Moreover, it was still the highest figure ever recorded excluding corporate transactions – the data in 2017 was impacted by the completion of 2 large corporate deals.

Last year, 18 operations were closed involving the purchase of land or buildings for conversion. 55% of the investment was undertaken in Madrid and Barcelona, with the remaining 45% made in the main regional cities, such as Málaga, Sevilla and Granada. The operators behind the new beds under construction include Nexo, Resa, WPCarey, Invesco, CBRE GI, Axa and GSA, amongst others.

Student halls offer some of the highest yields in the sector: 5.5% in the secondary cities and 5% in Madrid and Barcelona, in line with those generated by nursing homes (5.5%) and logistics assets (5%), but well above those seen in other segments such as retail premises (3.15%), offices (3.50%), residential (3.50%) and hotels (4%).

The reason is the enormous demand that exists for these types of assets. In Spain, almost half a million students need accommodation, but there are currently just 91,000 student beds. The gap is clear, and growing, boosted by an increase in the number of domestic and international students travelling away from home to study. Those not finding student accommodation have to rent in the private market – an informal, heterogeneous, inflexible and potentially expensive option (particularly in Madrid and Barcelona where prices are soaring).

All this makes the market for student accommodation extremely attractive.

Original story: El Confidencial (by E. Sanz)

Translation/Summary: Carmel Drake

Catella to Invest €200M in Offices and Parking Lots

22 April 2019 – Expansión

The Swedish manager, Catella Asset Management, wants to continue expanding its footprint in Spain, where it has invested €250 million over the last three years.

To this end, the investment firm, which has focused on the housing, student hall and retail sectors until now, is planning to invest €200 million in the purchase of office buildings and parking lots in Spain and Portugal over the next 2 years.

In addition to the major cities of Madrid, Barcelona and Lisbon, the company is also analysing operations in secondary cities such as Valencia, Málaga, Bilbao, Zaragoza and Porto.

Original story: Expansión (by Rebeca Arroyo)

Translation/Summary: Carmel Drake

Syllabus Delegates the Management of its Student Halls to Greystar

4 April 2019 – Idealista

The student hall specialist Syllabus by Urbania has signed an agreement with the US company Greystar to delegate it the administration of its halls of residence, which it operates under its own brand.

The agreement covers the functions of marketing, administration and general property management, amongst others, and Greystar is going to assign a dedicated team to its new client.

Syllabus has a portfolio of projects under development comprising more than 2,500 beds, and following its strategic investment agreement with Invesco Real Estate, it is now also working on a growth plan for up to 10,000 units over the next few years.

Greystar, which was founded in 1993, already manages 50,000 beds in halls of residence around the world for brands such as Chapter and Sailmakers in the UK, OurDomain in the Netherlands, EdR and Rockoff Hall in the USA, and Resa in Spain.

Original story: Idealista 

Translation/Summary: Carmel Drake

C&W: Investors Spent €300M on Student Halls in Spain in 2018

25 March 2019 – Eje Prime

Investors galore have set their sights on the market for student halls in Spain. Three major institutional investors, Axa, Invesco and Nuveen, have launched themselves into the construction and management of these types of properties, which they consider are reliable bets that generate high returns.

According to Cushman & Wakefield, investment in student halls in Spain amounted to almost €300 million in 2018. And the consultancy firm expects that figure to be exceeded in 2019.

Spain currently has 1.6 million students, of whom around 15% are potential users of student halls. Nevertheless, the accommodation stock comprises just 95,000 beds, which represents 6% of all matriculated students. As such, there is a lot of potential in the market.

In summary, demand is growing, supply is limited and returns are high, currently averaging 5.25% in Spain. As such, the market has captured the attention of global investors.

Indeed, investors in Spain generally fall into one of two categories: institutional investors with an international profile, such as the three players mentioned above; and European investors specialising in student halls, particularly those from the North of Europe, such as the British firms GSA and Collegiate, the Dutch firm The Student Hotel and the German company Corestate.

Meanwhile, the consultancy firm Savills Aguirre Newman calculates that around twenty major operations could be closed in this segment in 2019, which could result in investment of more than €2 billion over the next few years.

Original story: Eje Prime (by Roger Arnau)

Translation/Summary: 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