EQT Exeter, through its EQT Real Estate fund, has formalized a joint venture with Grupo Moraval, a spanish developer with a market share of approximately 30% in the Spanish segment of student residences that have been or are being developed between 2020 and 2022.
This alliance is expected to create an investment portfolio valued at more than 300 million euros, with the aim of expanding it to a value that exceeds 500 million. The Spanish student residence market has experienced growth thanks to the growth of the population group between 18 and 24 years old. Despite this, many of the country's university cities suffer from a shortage of high-quality student residences and have large numbers of young people in need of accommodation.
The joint venture will focus on creating a portfolio of student residences in Spanish cities that have a growing demand for student accommodation and a relatively low percentage of specialized offer. It is expected to identify market trends and future demand for accommodation in an efficient and concise manner, thanks to the combination of Grupo Moraval's internal “market intelligence” platform, which analyzes the need for student accommodation in university cities in Spain, with the EQT digitization team.
The two initial projects of this union are located in Seville and Malaga, which have approximately 1,150 and 350 beds, respectively. The construction of the property in Seville has already begun and it is expected to be operational for the academic year 2022/2023, while the one in Malaga is expected to be operational for the academic year 2024/2025.
In line with other EQT Exeter operations, the joint venture's assets will be developed with strong sustainability credentials and will seek green certifications such as LEED (Leadership in Energy and Environmental Design) and GRESB (Global ESG Benchmark for Real Assets).
The buildings will promote sustainable living practices with photovoltaic panels, electric vehicle charging stations and spaces for shared use vehicles. They will also have native or adapted plants that do not require a permanent irrigation system as well as other accessories and highly efficient and low-consumption equipment.
«This is a clear opportunity to develop a portfolio of properties with a significant social impact by offering student residences in Spanish cities that show an imbalance between supply and demand. In addition to the initial locations of the joint venture in Seville and Malaga, we are currently analyzing a growing range of projects in order to structure a large-scale and highly resilient portfolio during different economic cycles», says Carlos Molero, managing director and advisor investment for EQT Exeter.
Álvaro Soto, CEO of Grupo Moraval, points out that «our objective will be to further improve the offer of student residences in one of the most dynamic and fastest growing markets in Europe. Students, both nationally and internationally, are increasingly looking for personalized accommodation options at an affordable cost, and EQT Exeter and Moraval share the same vision on how to build and manage sustainable and digitally innovative accommodation for this segment».