Investor Focus in Spain Turns to Student Housing

16 December 2019 – The student housing sector in Spain is in the midst of an almost unprecedented boom. The country is home to 500,000 non-resident students, 100,00 of which come from the Erasmus program. The problem and the subsequent opportunity stem from the fact that a large part of the current supply of rooms is outdated and unattractive. Returns on student housing projects also tend to pay around 5% compared to 3-3.5% for residential and office developments.

There are currently 20 consortiums of institutional investors, local developers and housing operators investing in student housing projects in Spain. Grupo Moraval is the largest developer of student residences by the number of beds and plans to develop 6,500 places in Madrid, Barcelona, ​​Bilbao, Salamanca, Pamplona, ​​Seville, San Sebastián and Malaga by 2023. That figure is equal to 25% of the new residences planned for inauguration over the next three years.

Market studies by Grupo Moraval have shown that, between 2019 and 2022, the supply of beds is projected to grow by 22%: 94,000 beds in 2019 (3.3%), 99,500 seats in 2020 (5.9%), 106,500 in 2021 (7%) and 111,000 beds in 2022 (4.2%). nvestors are planning one billion euros in total investments by the time, according to Nick Wride, a director at JLL Spain.

That growth is already forecast to increase the capacity for supplying students with accommodations to 30% in Madrid, Barcelona, ​​Seville, Bilbao, Valencia and Pamplona. At the moment, the supply in those cities is enough for just 15% to 20%.

Original Story: El País – Sandra López Letón

Adaptation/Translation: Richard D. K. Turner

Patrizia Launches €650-Million Fund Targeting Residential Sector in Europe

2 December 2019 – The German fund Patrizia has launched a €650-million, pan-European investment vehicle to invest in the residential sector in Europe’s main cities. The fund also plans to invest more than €1 billion just in 2020.

Patrizia intends to focus on long-term investments, allocating 20% of the capital to the acquisition of alternative residential assets, such as co-living spaces and homes for students and the elderly (though probably not together…).

Original Story: Eje Prime

Adaptation/Translation: Richard D. K. Turner

Patrizia Looks to Invest Up to €500 Million in Spain and Portugal

2 December 2019 – The German investment fund Patrizia plans to invest up to 500 million euros in the Spanish and Portuguese real estate markets over the coming years. The fund currently intends to divide its investments between offices (40%), residences (40%) and logistics (20%) though the relative weight of each sector could vary. The firm is first looking to enter the market for student housing in 2020, either by building new facilities or acquiring in and will enter the market for student residences in 2020. Regardless, the firm would lease the facilities to outside operators.

Original Story: Eje Prime – Marc Vidal Ordeig

Adaptation/Translation: Richard D. K. Turner

Xior Acquires Two Student Residences in Barcelona for €41 Million

28 October 2019 – The Belgian student housing operator Xior Student Housing announced that it had reached an agreement to acquire two new student residences in Barcelona, ​​for a total of 41 million euros.

Xior reached an agreement to acquire The Lofttown residence, a 78-room, 140-bed residence in Barcelona. The asset is currently operational and is located near the Paseo de Gracia, a short distance from several universities and the city’s historic centre.

The firm also acquired Collblanc, another student housing development in the same city. The residence will have a minimum of 128 rooms, with several common areas, and will also operate under The Lofttown brand. The project is currently in the licensing stage, with delivery expected in 2021.

Original Story: Idealista

Adaptation/Translation: Richard D. K. Turner

Catella Launches CESHF II, A New Fund Student Residence Fund

21 September 2019 – Catella Asset Management Iberia has launched a second fund, Catella European Student Housing Fund II (CESHF II), specialising in student residences. The fund, which already has 100 million euros in its war chest, expects to raise up to €250 million over the next two years. CESHF II will invest in university cities with the potential for growth in Germany, Austria, France, the Netherlands, Belgium, Luxembourg and Spain, along with possible investments in the United Kingdom, Denmark, Portugal and Poland. The fund is aiming for broad diversification and a total of around 20 assets.

The new fund’s first acquisition was a 208-flat student residence in the German city of Mannheim. The building can accommodate up to 313 students and was recently built in a newly-developed area of ​​the city, Franklin Areal.

Original Story: Idealista

Adaptation/Translation: Richard D. K. Turner

Xior Acquires Student Residence and Plot of Land for New One in Madrid

17 September 2019 The Belgian group Xior Student Housing announced an agreement to acquire 80% of the real estate company that owns and operates the Leonardo da Vinci student residence, located on the campus of the European University of Madrid (UEM), in Madrid. The firm will also build a second, 200-bed residence in a total investment of €85.4 million. The European University group will hold onto the remaining 20%.

The first campus property has 464 rooms (528 beds) and belongs to the second-largest private university group in Spain, one which has more than 23,500 enrolled students, 11,500 of which are housed in the Villaviciosa campus.

Original Story: Idealista

Adaptation/Translation: Richard D. K. Turner

Savills Aguirre Newman Suggests that Málaga Must Double Its Supply of Student Housing

29 August 2019

Málaga currently has 1,200 places for non-residential students, according to Savills Aguirre Newman. The consultancy believes that the city needs to double that figure. At the moment, developers are working on six new projects, with a total of 900 new places, to be ready by 2022.

The University of Malaga has around 35,000 students, including full-time and part-time, and many of them come from other parts of Spain or even abroad. The recent long-term increase in residential rates is beginning to deter some people from carrying out their studies in the city.

Original Story: La Opinión de Málaga – José Antonio Sau

Adaptation/Translation: Richard D. K. Turner

Henderson Park and Hines Acquire Land in Barcelona’s 22@ for New Student Residence

19 July 2019 – Richard D. K. Turner

Henderson Park and Hines have acquired several plots of land in the 22@ area of Barcelona, ​​ to build a 350-bed student residence, a 3,610-m2 office building and a 176-m2 store. The project is the partner’s third development together and is expected to be ready in time for the 2020 student year.

Original Story: Expansión – Rocío Ruiz

Permira to Sell Student Residences at the Universidad Europea

July 2019 – Richard D. K. Turner

The venture capital fund Permira announced that it would sell two student residences at the Universidad Europea, after having acquired the US group Laureate’s assets in Spain and Portugal at the end of last year. The fund is looking to raise 100 million euros with the sale.

The two student housing blocks are named Leonardo Da Vinci I and II and are located in the European University’s main campus, in Villaviciosa de Odón, just outside of Madrid.  The two residences can house up to 528 students and have a heated pool and gym.

Original Story: Cinco Dias – Álvaro Bayón / Pablo Martín Simón

Syllabus Will Build a New 220-Room Student Residence in Sevilla

10 July 2019 – Richard D. K. Turner

Syllabus, a subsidiary of Urbania specialising in student residences, will invest fifteen million euros in a new dormitory in Sevilla. The new project will consist of 220 rooms, with a surface area of ​​6,150 square meters. The residence is expected to open to students for the 2021-2022 school year.

Syllabus is looking to manage up to 2,500 beds in in Spain and Portugal’s main university cities, attempting to partially fill the current lack of supply. In parallel, Urbania recently signed a contract for the US group Greystar to manage the Syllabus residences in Spain.

Original Story: Eje Prime