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

Project Caleido will Revolutionise the Commercial Offer on Paseo de la Castellana

9 May 2019 – Expansión

From the end of 2020 onwards, Project Caleido, which is being promoted by the property developer Inmobiliaria Espacio and the Philippine company Megaworld Corporation, is going to launch 14,000 m2 of commercial space at the northern end of Paseo de la Castellana in Madrid, whereby providing a much-needed leisure area for workers in the Cuatro Torres business district.

The commercial space will seek to imitate a typical high street with between 70 and 80 premises distributed over two floors. The premises will house restaurants (35%), services (11%) and retail, technology, accessories and cosmetics brands.

Caleido’s offering will also include a boutique cinema, a supermarket, a gym, an exhibition and events centre and an eSports space. The developers have already marketed 30% of the space and expect to fill another 20%  of the premises before the summer.

According to a study performed by GfK, Caleido will receive more than 3 million visitors per year and will serve not only the employees that already work in the area, but also the more than 6,000 students who will be studying at IE’s new high-rise campus in the fifth tower as well as employees and patients of the Quirónsalud Group’s new advanced medicine centre.

Original story: Expansión (by Rebeca Arroyo)

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

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

BNP Paribas: Investment in the Real Estate Sector Amounted to €2.0bn in Q1 2018

1 April 2019 – Eje Prime

Investment in real estate assets amounted to €2.0 billion during the first quarter of 2019, down by 5% compared to the same period in 2018, according to data from the consultancy firm BNP Paribas Real Estate.

Investment in the office sector amounted to €900 million, accounting for 47% of the total, with prime yields remaining stable at 3.25% in Madrid and 3.5% in Barcelona.

Investment in the retail segment amounted to €410 million, where prime yields reached 3% on high street stores, 5% on shopping centres and 5.75% on retail parks.

Investment in alternative assets amounted to €305 million, with investors increasingly interested in halls of residence for students and nursing homes for the elderly.

Finally, in the logistics sector, investment amounted to €206 million, boosted by the growth in e-commerce and consumption.

By type of investor, 50% of the transacted volume proceeded from investment funds, whilst Socimis contributed 18% of the total volume.

Original story: Eje Prime 

Translation/Summary: Carmel Drake

CVC to Purchase the Universidad Alfonso X for c. €1.1bn

26 March 2019 – El Confidencial

Following Permira’s acquisition of Universidad Europea de Madrid in December for €770 million, CVC Capital Partners is following suit. The private equity firm is on the verge of completing negotiations to buy Universidad Alfonso X El Sabio (UAX), also in Madrid.

The consideration for the operation could amount to €1.1 billion, equivalent to 14 x EBITDA, an investment record that reflects the huge interest in the sector from private equity firms.

The main shareholders of UAX are Jesús Núñez, who owns a 72% stake and Manuel Piñera Gil Delgado, who owns 15.67%, together with his ex-wife María Teresa Gallego García, heir of the alcoholic beverage company DYC. Another 7% is owned by their nephew José Jaime Núñez.

Currently, the most significant investments owned by CVC Capital Partners in Spain are its 20% stake in Naturgy, worth €3.8 billion, which it shares with Corporación Financiera Alba; its 25% share of CLH worth €1 billion; Deoleo, the olive oil company that is facing serious financial problems; and Lecta, formerly Torraspapel.

Jesús Núñez created UAX in 1993 after reaching an agreement with the Town Hall of Villanueva de la Cañada, which granted him the right to use 1 million m2 of land for 75 years on which to build the campus. The university now educates 15,000 students per year, generates a turnover of €104 million and makes a net profit of €45 million.

Original story: El Confidencial (by Agustín Marco)

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

Urbania to Open a Hall of Residence for Students in Pamplona

18 February 2019 – Expansión

Urbania is increasing its commitment to halls of residence for students. The real estate firm, through its subsidiary Syllabus, is planning to open a new accommodation block for university students in Pamplona, with 300 rooms and an investment of €17 million. This hall of residence in Pamplona will be added to the group’s other projects in Madrid, Málaga and Valencia. Moreover, the group is analysing new opportunities.

The hall of residence in Pamplona will occupy a plot with a surface area of 8,837 m2. Construction will commence in 2019 and is expected to be completed in 2021. This accommodation is going to be constructed in the area near to the El Sadar stadium, a stone’s throw from the Universidad Pública de Navarra and its sports facilities, the Uned campus and less than 2km away from the Universidad de Navarra campus.

The new hall of residence will comprise six storeys and will have an extensive green area inside. As well as the 300 rooms, it will have several shared kitchens, spaces for study, a gym, a cinema area, a coworking space, leisure areas and a laundry (…).

Original story: Expansión (by Rebeca Arroyo)

Translation: Carmel Drake

URJC to Build 2 Halls of Residence in Fuenlabrada and Móstoles

28 January 2019 – La Vanguardia

The Universidad Rey Juan Carlos (URJC) announced today the construction of two new lecture halls, on its campuses in Aranjuez and Fuenlabrada, as well as the construction of two new halls of residence for students during the course of 2019, which will be located in the towns of Fuenlabrada and Móstoles.

The news was announced this morning by the rector of the university, Javier Ramos, during a speech (…) in which he highlighted that the new facilities “will benefit the more than 46,000 students at this public university in Madrid”.

Ramos explained that building work has already started on the new lecture hall on the Aranjuez campus – and that it will be followed soon by another new lecture hall on the Fuenlabrada campus. He added that, during the course of this year, work will also start on the construction of two halls of residence, one in Fuenlabrada and one in Móstoles.

Moreover, the rector revealed that work is also being performed on projects to construct new buildings on the Móstoles and Alcorcón campuses, as well as to renovate the property that the university recently acquired on Calle de Buen Suceso in Madrid (…).

Ramos reiterated that the URJC is positioned “at the forefront of research”, citing data from the Times Higher Education World University Ranking (THE), which “places the URJC as the third university in Spain, due to the impact of its publications, based on citations from its scientific articles, with a score of 68.5 out of 100)” (…).

Original story: La Vanguardia 

Translation: Carmel Drake

Excem Debuts on the MAB with a Market Value of €16.8M

9 July 2018 – Expansión

The Socimi dedicated to the rental of rooms for young people is going to make its stock market debut at a price of €1.40 per share. The Socimi is going to debut with a portfolio of 28 homes, which contain 181 rooms for rent, all located in the centre of Madrid.

The real estate firm Excem, which was constituted in 2015, has the aim of investing in urban properties located in central areas of Madrid, Barcelona and other main cities in Spain. It targets properties that are suitable for renovation and redecoration and subsequently leases out rooms to students and young professionals.

Currently, the Socimi is looking to extend its activity in the capital to other cities with “high demand and limited supply of these types of assets for rent”, including Barcelona, Sevilla, Valencia, Málaga, Bilbao and Santiago de Compostela, according to information provided in the explanatory prospectus that accompanies its debut on the MAB.

Around 40% of the company is controlled by Excem, a group owned by the Hatchwell family. In fact, the Socimi is chaired by David Hatchwell, who started his professional career in Goldman Sachs and HSBC before joining the group.

With the aim of undertaking its investment and growth strategy, Excem’s Socimi has conducted a number of capital increases since 2016 and has mortgaged all 28 of the homes that it holds in its portfolio.

At the moment, it has an indebtedness level equivalent to 38.5% of the value of its assets, well below the leverage limit of 70% that the company has imposed on itself.

“HOMIII.COM”.

The Socimi markets the rental of its homes through its own online platform (www.homiii.com) and by subleasing through other specialist companies. Since September last year, it has had an agreement with Uniplaces, a company from the United Kingdom specialising in reserving accommodation for students in a number of European cities. According to the prospectus, at the end of March, the firm had 175 lease contracts for its rooms (96.7% of its portfolio) with different tenants.

By virtue of the contracts, the tenants pay a monthly rent and make a contribution towards shared utilities (water, electricity, gas, internet and central heating) after handing over a deposit equivalent to one month’s worth of both concepts by way of guarantee.

Excem has the aim of achieving a gross return on each asset of between 4% and 6%, a percentage calculated as gross income from rental over the investment made. The Socimi has been created with the option of setting itself an expiry date, given that it does not rule out selling its properties once the minimum period of three years established for Socimis has come to an end, or dissolving the company after the seventh year, “depending on what the shareholders agree on the basis of the performance of the company, as well as the current and future properties in the portfolio”.

Original story: Expansión 

Translation: Carmel Drake