Real estate investor EQT Exeter and Spanish developer Group Moraval have formed a joint venture to create a portfolio of purpose-built student accommodation (PBSA) facilities in Spain.
The JV is expected to have an initial capacity to establish an investment portfolio valued at over €300 mln and has aspirations to ultimately grow the portfolio to a value in excess of €500 mln.
Representing EQT Exeter's first investment in Spain, the JV has already secured two initial sites in Seville and Málaga comprising approximately 1,500 beds.
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.
'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.'
The JV will focus on cities with growing student housing demand across Spain and a low percentage of PBSA availability, also referred to as the provision rate. An example of this is Málaga, where the educational offering is expected to grow even further as the municipality recently offered public land for the establishment of two new universities.
The initial sites in Seville and Málaga comprise 1,150 and 350 beds respectively. Located next to two of University of Sevilla’s largest campuses, Pirotecnia and Ramón y Cajal, the Seville site is also within walking distance to the main faculties and the city center and next to the San Bernardo public transportation hub.
The Málaga site will be located in the University of Málaga Teatinos campus and is within walking distance to the main faculties and to the public transportation hub which provides easy access to the city centre.
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.
'Students both nationally and internationally are increasingly seeking tailored, cost-efficient housing options and EQT Exeter and Moraval share the same vision on how to build and manage sustainable and digitally innovative accommodation for this segment.'
Construction of the Seville site has already commenced and is expected to be finished by the beginning of the 2022/2023 academic year while the Málaga site is currently anticipated to be delivered by the beginning of the 2024/2025 academic year.
Both sites are targeting environmental certification, and will be built with photovoltaic panels on the roof, provide electric vehicle charging stations and spaces for carpool vehicles, use native or adapted plants which don’t require a permanent irrigation system and employ high efficiency-low consumption fixtures and fittings.
The beds will be let at market-rate rents under the newly created Nodis brand.
