Global real estate firm Round Hill Capital has acquired a site in Madrid for its first purpose-built student accommodation (PBSA) development in Spain.
Financial details were not disclosed.
The 12,800 m2 site in the Aravaca district of Madrid will host a 500-bed scheme, with construction set to commence in 2021. The development is scheduled to be ready for occupation for the 2023/24 academic year.
Michael Bickford, founder and CEO at Round Hill Capital, said: 'We are delighted to announce our latest European PBSA investment, further establishing Round Hill’s reputation as the leading PBSA investor across the continent.
'There is an undersupply of high-quality student accommodation in Madrid and this real estate infrastructure is critical for attracting students to the city who will support its continued development and the attraction of foreign investment.'
The site has full planning permission and is within close proximity of many of Madrid’s leading universities including IESE, ESIC, Francisco de Vitoria and the Complutense University of Madrid. It is also exceptionally well-located with rail and bus links to the city centre just a five-minute walk away.
The deal marks Round Hill Capital’s 23rd PBSA investment in continental Europe, bringing its current portfolio to over 9,590 beds. The company said it was actively seeking further investments in Spain, having identified significant supply/demand imbalances in high quality student accommodation in the Spanish market.
Nido Student, which currently operates 28 student residences across Europe with over 7,000 beds, will operate the development upon completion. The group has a target of 20,000 beds under management by 2025.
Bickford added: 'Although Covid-19 presents short-term challenges, student accommodation is a defensive counter cyclical long-term real estate investment. Previous recessions have shown demand for education remains strong, as students tend to invest more in their education when jobs markets are more competitive.
'Europe’s universities will always be attractive to international students, who come to the continent to enjoy its unique culture as well as study. Our pipeline in all rental housing sectors is strong, because investors recognise our 18-year track record of successfully investing in, developing and operating residential assets across Europe and the US.'
