Morgan Stanley Real Estate Investing's open-ended core fund is in exclusivity to buy two new student housing blocks in Barcelona.
According to sources at Mipim, MSREI's Prime Property Fund Europe is investing at a yield of approximately 4.75%, in a circa €150 mln transaction. The vendor is Vita Living.
If the deal closes, it will provide evidence of pricing for prime student housing in Spain, one of the Western European property markets to correct most quickly for residential investments.
The two Barcelona buildings total 623 rooms and are charging students circa €1,500 per month. One is on Carrer de Sancho de Ávila in Poblenou, the 22@ district, and the other on Av. d'Esplugues is at Pedralbes in the Esade district. Both are considered prime locations, within walking distance of five universities.
Vita Living develops student accommodation in the UK and Spain. Its third Spanish development, to be delivered with Metrovacesa ahead of the 2026/27 academic year, is in northern Madrid on the wider Oria Campus.
Earlier this year, Cain International provided Vita and Metrovacesa with a €74 mln construction loan for the Madrid project which will have 585 beds.
MSREI's Prime Property Fund Europe is the US investment bank's first vehicle in Europe for core investing.
After luring Paddy Bingham from Invesco Real Estate as fund manager, MSREI launched Prime in 2019 and raised €700 mln in 2020. The Dutch Metal Workers pension fund, PMT, made a €250 mln commitment.
Vita Group sold three UK purpose-built student blocks in Edinburgh, Belfast and Warwick last October, to Savills Investment Management for £300 mln.
