Belgian REIT Xior Student Housing has announced the acquisition of the Leonardo da Vinci student residence located on the campus of UEM (Universidad Europea de Madrid) in Madrid.
The transaction, involving a total investment of €85 mln for Xior, consists of an up-and-running residence of 464 units as well as additional development potential for 200 extra beds. The company said that it expects to make a 7% return from the entire operation.
Under the deal, Xior will acquire 80% of the real estate company that holds and operates the residence while the current owner and manager of the university, who is also the seller, will retain the remaining 20%.
The deal will bring Xior's investment volume in Spain and Portugal to €139 mln, representing more than half of the targeted amount of at least €250 mln set by the company when it entered Iberia in March 2019.
The campus, which covers 250,000 m2, includes top-notch facilities such as five educational buildings, various indoor and outdoor sports facilities, parks and green areas and 1,500 parking spaces.
CBRE advised the vendor.
Christian Teunissen, CEO of Xior Student Housing: 'We are very proud to be able to boost our ambitions in Spain with the acquisition of this landmark property and to enter the Madrid market after our acquisition in Barcelona. This kind of opportunity to acquire one of the top five student residences (PBSA) in Spain in terms of size, linked to one of the most prestigious universities, does not happen every day.'
