Round Hill Capital (RHC) has struck a trio of deals in the Spanish accommodation sector for a total of €183 mln – including the acquisition of a historic 400-bedroom hotel set to become one of the largest modern accommodation spaces in Madrid.
The deals also encompass two new purpose-built student accommodation (PBSA) developments in Madrid and Seville. Combined and once refurbished, this will add a projected 1,228 new beds to Round Hill Capital’s growing real estate portfolio in Iberia.
The company is celebrating 20 years in business this year.
Michael Bickford, founder and CEO, said, ‘Our 20 years of experience ensures we can deliver intelligent investments.’
The PBSA investments are part of a €1 bn-plus European joint venture with Canada Pension Plan Investment Board (CPP Investments), forming one of the largest Pan-European student accommodation mandates in history. For an interview with the company, click here.
Madrid investment 1
The first of the trio of deals sees RHC acquire a 24,000 m2 vacant, freehold hotel located in prime central Madrid, with a projected total investment over €120 mln. The building will be refurbished to create a flagship aparthotel scheme specifically designed to provide accommodation with a focus on students and young people. To be developed by Ruesma and designed by Morph Estudio, the space will include F&B spaces, a gym, co-working space, and an interior garden.
The asset is located in front of Principe Pio train station and shopping centre, and is walking distance from hotspots such as the Plaza de España, Templo de Debod and the Royal Palace of Madrid.
Madrid investment 2
The second is a forward funding of a 180-student bed residence in Madrid worth €30 mln. This will be developed by Alta Real Estate, in collaboration with Grupo Ibosa, and is also designed by Morph Estudio working closely with Nido Student. The residence is located near the Plaza de Castilla, a district close to Madrid’s most important universities, including the recently opened IE university tower.
Seville deal
The third investment is a fully operational asset in Ramon Carande, Seville, purchased by RHC in early June for €33 mln comprising 413 student-beds and common areas such as study rooms, gymnasium, and a rooftop with swimming pool.
The hotel in Madrid transaction was advised by Ashurst, Jose Antonio de la Torre and Gleeds on the buy side, with Mundhotel, Garrigues and JM Rodriguez Prada on the sell side. The forward funded PBSA Madrid investment was advised by Ashurst and Hill International on the buy side, with CJO and Savills on the sell side. The PBSA Seville transaction was advised by Ashurst, Deloitte and Hollis on the buy side, and BDO and Arcano on the sell side.
