Merkel Capital has announced the launch of an investment vehicle with €250 million in capital and €400 million in investment over the next four years to double the number of rooms built in PBSA, increasing the number of beds from 3,200 to 6,700.
This investment will focus primarily on Madrid, Barcelona, Valencia, Málaga and Seville, cities where it has already carried out projects in recent years, through the construction of student residences and flexible apartments.
The starting point is that Merkel Capital will retain operational management of a large proportion of the assets sold through its own student accommodation and flex-living operator, Vibe Stay. It will also begin diversifying its business into the hotel sector by building a five-star hotel on the Costa del Sol.
Last November, Greystar completed the acquisition of a portfolio comprising three student residences in Spain, previously owned by Merkel Capital. The transaction was valued at around €120 million, with the portfolio comprising more than 1,200 beds across three properties located in Seville, Pamplona and Sabadell (Barcelona). All the properties are situated near major university campuses and hold sustainability certifications, notably the BREEAM Very Good accreditation. The transaction was financed by Deutsche Pfandbriefbank.
