DWS has acquired Palm Studios, a student residence in Seville, from LaSalle Investment Management. The deal was completed through one of DWS’s institutional real estate funds and is the asset manager’s first investment in purpose-built student accommodation (PBSA) in Spain.
The residence opened three years ago on Avenida de la Palmera, one of Seville’s main thoroughfares and one of the city’s most established university areas. It is around five minutes from the University of Seville’s Reina Mercedes campus, which has more than 22,700 students. More than 66,000 students from different universities in the city are within a 30-minute radius. The location offers direct access to Seville’s main roads, public transport links and proximity to landmarks such as María Luisa Park and the historic centre.
The asset has 544 beds and 111 parking spaces, and holds a BREEAM Excellent certification. All rooms have their own fitted kitchen, and the premium units also have private terraces, a distinctive feature in the Spanish student housing market. Communal areas include study rooms, coworking spaces, a gym, a café, a private dining room, a games room and a cinema, as well as an outdoor swimming pool and a rooftop terrace with views over the city.
“The acquisition of Palm Studios marks a significant milestone in DWS’s growth strategy in the Living segment in Iberia and represents our first investment in student residences in Spain. We are adding to our portfolio a benchmark asset in one of Seville’s most established university locations, combining high standards of quality, sustainability and a differentiated residential offer”, explained Manuel Ibáñez, Head of Real Estate Spain at DWS.
“Palm Studios is a modern, state-of-the-art PBSA asset in one of Spain’s most attractive areas for students. We are pleased to have contributed to the development of this important project and to see how it meets the sustained demand for quality student accommodation in Seville”, noted Amroy Lal, Head of Value-Add Investments at LaSalle Investment Management.
Seville has become one of Spain’s leading student housing markets, behind Madrid and Barcelona, supported by the size of its student population and growing interest in the city from domestic and international students. Limited specialist accommodation, rising demand and a growing student population are driving an increasingly professional and institutional PBSA market in Spain.
DWS manages a €1.9 billion real estate portfolio across Spain and Portugal and has around €300 million of core and core-plus capital for new investments in both markets. Alongside PBSA, its Living strategy targets senior living, flex living and build-to-rent, with a particular focus on value-add opportunities in markets with structural supply shortages. The firm sees long-term opportunities in the Spanish Living segment, driven by population growth, new household formation, rental demand, undersupply of certain residential formats and Spain’s growing appeal as an international student destination.
“We are convinced that the strong fundamentals of the PBSA market, supported by growing structural demand and a still limited supply of quality accommodation, will continue to generate long-term investment opportunities. Spain remains a priority market for DWS in Europe, where we will continue to assess opportunities across the different Living segments and through different investment strategies”, added Manuel Ibáñez.
