Fund manager Invesco Real Estate has teamed up with developer Urbania International to create a student housing platform in Spain.
The joint venture between Invesco and Urbania International’s Syllâbus subsidiary will begin with an initial investment capacity of €250m.
The agreement includes the immediate incorporation of four projects already under development by Syllâbus, in Madrid, Valencia and Málaga.
These projects will be amalgamated with six more in the upcoming months, giving the platform a portfolio that encompasses 2,000 rooms.
The joint venture partners plan to increase this to 3,500 rooms in university cities in Spain and Portugal.
The projects will be developed by Syllâbus, which will also operate the residences under its own brand.
Tobias Simon, senior director of fund management at Invesco, said: “With a significant undersupply of student beds, supportive demographics and a resurgent economy in Spain, the project offers an attractive opportunity to invest in a growing real estate segment in Spain together with a specialised partner.
“The current lack of high-quality student accommodation with modern amenities which meet the requirements of today’s students provides encouragement for our strategy to create an attractive income-oriented portfolio and achieve NOI growth for our investor.”
Jeffrey Sújar, CEO of Syllâbus, said the goal was to offer students something more than a well-equipped hotel. “We are focused on creating an ecosystem where students can make the transition to their professional lives and develop all their skills,” he said.
Urbania’s plans include expanding its portfolio of residences in the coming years to reach 10,000 rooms in Spain, Portugal and Italy.