Belgian student Housing REIT Xior has entered Granada, Spain, with the purchase of the Loyola student residence for €37 mln, reflecting an expected gross return of 7%.
The asset, located on the Cartuja campus of the University of Granada, was bought from Amro Estudiantes, which will continue to manage it during the first two academic years on the basis of a net triple rent contract. After this two-year period, Xior will take over the management.
The property is currently being remodelled and expanded into a 347-unit student residence with 354 beds. The project is due to be completed in Q3 2020.
Raj Kotecha, managing director of Amro, said: ‘We believe that the Granada asset sets a new standard for student accommodation in the Spanish market. We are delighted to have completed the sale to Xior Student Housing and look forward to working with them during the operational phase.’
Christian Teunissen, CEO of Xior Student Housing said: ‘We are proud to continue our expansion on the Iberian peninsula in 2020 with another fantastic acquisition. With this acquisition, not only are we adding a fantastic new city to our rapidly growing Spanish portfolio, but we are acquiring a brand-new residence situated in the best location in the city, developed according to the latest insights and adapted to students' needs and wishes. In other words, it is a perfect fit with Xior's philosophy. In addition, the lease with the Amro Estudiantes team gives us the opportunity to manage the ramp-up period and the roll-out of a local operational team as efficiently as possible both in terms of risks and operational and management impact.’
Xior was advised by CBRE on this transaction, Amro Estudiantes by Savills.
