RoundShield Partners has announced that it has extended a new senior secured cross-collateralized facility to Merkel Capital, an existing borrower, in order to continue funding the acquisition and development of purpose-built student accommodation (PBSA) assets in Spain.
RoundShield´s funding and support now totals €120 mln, also entitling the fund to a significant equity participation.
Merkel Capital said it intended to continue assembling a portfolio of more than 3,000 beds in prime locations across Spain, all within walking distance of local universities and excellent access to city centres.
To date, vehicles managed by Merkel Capital and funded by RoundShield already own six assets (c. 2,400 beds) in different stages of development in Madrid, Sevilla, Pamplona, Granada and Sabadell.
These assets will be managed by a leading international student housing operator with several thousand beds under management and with presence across nine countries.
Opening of the first batch of residences is scheduled for September 2024’s academic intake. Additional pipeline opportunities have been identified and secured in core locations across Spain including Valencia, Malaga and other Spanish cities.
The European PBSA market benefits from highly attractive demand dynamics due to demographic trends and increasing national and international mobility.
The Spanish market in particular remains a key topic for investors with both provision rates (beds per student) significantly below that of neighbouring European countries, and a heavily outdated stock.
RoundShield has taken a very active role in the PBSA sector funding a number of development platforms in the UK and Continental Europe, since 2018 when it first identified the opportunity.
