EQT Exeter has teamed up with Spanish developer Grupo Moraval to form a €500m student housing investment venture.

EQT Exeter, investing via its EQT Real Estate II fund, has set up the student accommodation partnership which is expected to initially have a €300m portfolio in Spanish cities with growing student housing demand.

The companies said the joint venture’s two initial sites in Seville and Málaga comprise approximately 1,150 and 350 beds, respectively.

Carlos Molero, managing director, investment advisor to EQT Exeter, said: “We are excited to enter the Spanish student housing market alongside market leader Grupo Moraval. This joint venture is an excellent example of EQT Exeter’s ‘local with locals’ approach of sourcing attractive opportunities and investing in thematic trends which are decoupled from the financial cycle.

“We see a clear opportunity to deliver a portfolio of high social impact, purpose-built student accommodation in Spanish cities which are experiencing a supply-demand imbalance. In addition to the joint venture’s initial sites in Seville and Málaga, we are evaluating a growing pipeline of projects to build a large-scale, resilient and downside-protected portfolio.”

Rob Rackind, partner and investment advisor to EQT Exeter, said: “This joint venture with Grupo Moraval marks a landmark entrance into Spain for EQT Exeter. It is an example of our ‘business to consumer’ efforts which are focused on taking advantage of the demographic transformations that are occurring across Europe.”

Alvaro Soto, CEO of Grupo Moraval, said: “Grupo Moraval is delighted to partner with EQT Exeter, which is well-known for its hands-on value creation strategies, in this ambitious project.

“Together, we will aim to further advance the purpose-built student housing offering in one of the most dynamic and fastest-growing higher education markets in Europe.”

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