Belgian student housing group Xior has extended its financing agreements to the tune of €307 mln and unveiled a new project development in Seville, Spain.
The company said it had strengthened its debt position with new credit lines and bonds. The deals include a €40 mln increase of an existing green US private placement (USPP), plus a new green USPP shelf agreement worth €107 mln, of which €45 mln has already been drawn.
The firm has also increased an existing bank loan with ABN Amro Bank to the tune of €60 mln, and agreed a new bank loan with ABN Amro worth €100 mln.
Xior confirmed its growth ambitions in Spain by signed a letter of intent for a new acquisition in Seville at a prime location.
The greenfield project will comprise around 416 units, common areas and 74 parking spaces. The scheme will offer a mix of 338 studios and student rooms along with 78 short-stay rooms.
It represents a total investment volume of around €44.4 mln. A triple net lease has been signed with operator Odalys for 12 years, with delivery planned for the academic year 2024-2025. Xior said it carried an expected theoretical gross initial yield of around 7%.
The company noted that since the beginning of the year, a total of around €233 mln new acquisitions and developments have already been announced, while Xior also has an extensive pipeline that will be completed in the next three years.
The firm said that the recent rush for student rooms proves that there is still a great shortage of quality student rooms and that there is still a lot of growth potential in this real estate segment.
Specialising in student accommodation in Belgium, the Netherlands, Spain and Portugal, Xior currently owns and operates a portfolio of approximately €1.74 bn with approximately 12,595 lettable student units.
If the firm's entire pipeline is realised, the portfolio will increase to around €2.2 bn with more than 18,000 lettable rooms, according to Xior.
