Fiera Capital’s European real estate debt fund has provided a €19.15m loan to IP Investment Management (IPIM), Heed Capital and Amro Partners to help develop a student housing project in Spain.
The Fiera European Real Estate Debt Fund (FERED) has provided the three-year loan facility to finance the construction of Amro Valencia Puerto, a €30m purpose-built student accommodation (PBSA) project comprising 221-beds, expected to be completed in December 2025.
The loan for the Valencia project is the second financing facility Fiera has issued to an Amro-managed PBSA deal. Back in March, Amro and Falco Capital secured the €17.5m three-year development loan from FERED for Amro Estudiantes Alicante, a €30m project in Alicante.
Amro Valencia Puerto marks Amro’s tenth PBSA project in Iberia and their second in Valencia since their initial investment in 2012.
The project marks IPIM and Heed’s debut in Valencia’s student housing market through their €25m Iberian student living fund. It is also their second investment in Iberia, following a 151-bed student housing project in Porto, Portugal, for which they partnered with Amro.
Richard Howe, co-head of Fiera’s European real estate debt business, said: “The growing weight of institutional capital in the Spanish PBSA market speaks to its attractive underlying fundamentals, where there is a structural undersupply of professionally managed and contemporary student housing against a backdrop of a growing student population, from a domestic and international standpoint.”
Raj Kotecha, co-founder and CEO of Amro Partners, said: “Our ESG-focused strategy continues to attract the highest quality global lenders and we’re pleased to be working with Fiera Capital again to bring this BREEAM Outstanding new PBSA project to fruition.
“Demand for dedicated student accommodation in Valencia is extremely strong and we have a proven track record of delivering best-in-class PBSA assets in this exciting and vibrant city.”
Selina Williams, executive director of IPIM, said: “Fiera Capital’s commitment to lend on IPIM’s first PBSA investment in Valencia is testament to our shared recognition of the strong underlying fundamentals of the sector.
“The sustainability credentials and best-in-class lifestyle amenities will make this development a highly desirable option for students in Valencia seeking an unparalleled residential experience. We are delighted to be raising the bar for environmentally-responsible and community-focused student housing.”
Gustavo Guimarães, board member of Heed Capital, said: “Heed Capital has taken another important step towards the development of a new student accommodation project in the city of Valencia, funded by one of our managed funds.
“The collaboration with IPIM, Amro and Fiera Capital represents a significant contribution to the success of this project and, undoubtedly, to the maturation of the local market.”
To read the latest IPE Real Assets magazine click here.
