Real assets investor Azora has re-entered the European student housing sector with the acquisition of a portfolio of 12 assets in Spain from a real estate fund managed by EQT Exeter.
The assets, spanning nine cities across the country, were acquired by an Azora purpose-built student accommodation (PBSA) vehicle from the EQT Real Estate II fund for an undisclosed amount.
EQT Exeter built the portfolio when it teamed up with Grupo Moraval in May 2021 to acquire a premier portfolio of PBSA assets in Spain, totalling about 1,500 beds. Following the initial acquisition, EQT Exeter has grown the portfolio to 12 assets, with approximately 4,100 beds in cities like Madrid and Barcelona, and in secondary education hubs like Seville, Málaga and Granada.
The acquisition of the EQT Exeter platform marks Azora’s re-entry into the student housing market, where it previously held a PBSA portfolio in continental Europe, which it sold in 2017.
Azora said the new acquisition will serve as the foundation for expanding its new PBSA platform, aiming for 10,000 beds in key Southern European cities.
José Alonso, partner at Azora, said: “After closely monitoring the market for several years, we believe now is the ideal time to reenter the PBSA sector in order to provide solutions to the current shortage of student housing in Spain and other Southern European countries.
“The platform established by EQT Exeter and Grupo Moraval aligns with the high standards of our PBSA vehicle and will serve as the foundation for our expansion in Southern Europe.”
Tom Livelli, partner and head of living strategies, Europe at EQT Exeter, said: “This transaction underscores the strong and growing demand for high-quality student housing in Europe, supported by robust fundamentals and resilient market dynamics. Spain remains a top investment destination, with strong economic growth and a structural undersupply of student housing.
“This exceptional portfolio showcases EQT’s integrated investment, development, and operational expertise, and we remain committed to expanding our presence in the European living sector.”
Carlos Molero Sánchez de la Blanca, MD at EQT Exeter, said: “We are excited to have completed the sale of our first living assets in Spain, an excellent example of EQT Exeter’s ‘local with locals’ approach to investing in thematic trends.
“Our selective aggregation strategy, combined with a deep understanding of the specific needs of students and a focus on the operational and design aspects of each building, have allowed us to achieve significant scale and deliver a highly resilient, downside-protected portfolio with a high social impact.”
Alvaro Soto de Scals, CEO, Grupo Moraval, said: “It has been a pleasure to have contributed to the success of our JV with EQT Exeter, having sourced and managed the build-out of this platform as planned. The portfolio is built with state-of-the-art technology and quality; with sustainability a core element for both Group Moraval and EQT Exeter.”
To read the latest IPE Real Assets magazine click here.
