Investor-developer Round Hill Capital and Saudi financial services firm MEFIC Capital have acquired a development site in Porto, Portugal, with plans to create a mixed-use project with significant residential components.
The transaction volume was not disclosed, but the joint venture said it had made a €100 mln commitment to realise the project, which represents a Portuguese debut for both firms, and a European first for MEFIC.
'Round Hill has been evaluating the Portuguese markets for several years and is delighted to have completed the acquisition of this very well located mixed-use urban regeneration scheme in Porto, which will set a new standard in Portugal with an uncompromising approach to quality, safety and service,' commented Michael Bickford, founder and CEO of Round Hill.
The 78,061 m2 development, adjacent to the University of Porto Campus, will comprise student accommodation (1,200 beds); residential apartments (200 units) and a hotel, as well as ancillary commercial facilities, including a supermarket, Mercado and office space.
The deal enables Round Hill to grow its residential and student accommodation portfolio in Europe. To date, it has acquired and managed more than 100,000 residential units in the UK, Germany, the Netherlands, Czech Republic and Spain and is currently one of the largest private landlords in multiple countries.
In terms of student housing, so far Round Hill has acquired, built up and managed over 2,700 student housing beds through its Nido platform. In 2015, the firm sold 2,378 beds to Greystar Real Estate Advisers for £600 mln (€682 mln).
'We are pleased that MEFIC’s first investment outside of Saudi Arabia has been made in Portugal, a country that shares our values of integrity and professionalism. The stable and growing economy is a key attraction whilst allowing us to create long-term employment and assist in developing the local and wider community in a responsible manner,' said Ibrahim A. Al Hedaithy, managing director, MEFIC Capital.
The site will become part of the Porto Innovation District, an initiative between Porto City Council, InvestPorto and the local universities, faculties, business schools, hospitals, institutes and research centres to help drive innovation and entrepreneurship in Porto.
'Portugal is benefitting from positive macro-economic trends, persisting supply/demand fundamentals for student housing, hotel rooms as well as wider residential property and an attractive investment environment. Round Hill continues to look to make further investments in Portugal with similar value characteristics,' concluded Bickford.
Round Hill and MEFIC were advised by EDGE International Lawyers, Arcadis, Baker Mackenzie, DDM and Deloitte.
