Greystar Real Estate Partners, AXA Investment Managers - Real Assets (AXA IMRA) and CBRE Global Investors have acquired four freehold student accommodation assets in Spain’s tier one cities of Madrid, Valencia and Málaga.
Financial details were not disclosed, but Greystar reported that the deal constituted one of the largest in the student accommodation sector in Spain to date, comprising 1,100 beds.
The portfolio was purchased from a joint venture between Urbania and Invesco Real Estate by a platform which is majority-owned by AXA IM - Real Assets and CBRE Global Investment Partners (CBRE GIP), the indirect strategies business line of CBRE GI, both acting on behalf of clients, alongside Greystar.
Greystar, which manages the platform, will operate the new assets under the Resa brand, which it acquired in 2017. The platform now owns a total of 11,100 beds across 43 residences in 20 Spanish cities, with the new assets increasing Resa’s offering in Madrid, Valencia and Malaga where the brand is already present.
Three of the newly acquired assets are under forward-purchase agreements and are in advanced phases of construction with completion expected in March 2021, while the fourth in Madrid is ready for occupation.
Juan Manuel Acosta, managing director – Spain, Greystar, said: 'The transaction enables us to strengthen our leadership position as the largest operator of student accommodation in Spain. It is rare to be able to acquire a portfolio of this scale and quality in Spain and it will significantly enhance our existing offering.
RESA has remained resilient despite the uncertainty of this year achieving around 97% occupancy, which underpins the strong fundamentals of the student accommodation sector in Spain.'
Line Verroken, senior investment manager, CBRE GIP said: 'This transaction allows us to add four newly purpose build, high quality and sustainable assets to the RESA portfolio, and further strengthens our current offering. We continue to believe in the long-term resilience of the student accommodation sector and are pleased to be growing the portfolio alongside Greystar and AXA IMRA.'
