Round Hill Capital announces its latest acquisition, a new 250-bed asset in Valencia, as it seeks to continue expanding its investment in new student accommodation in the main cities of the Iberian Peninsula. The operation had the advice of CBRE, Gómez Acebo Pombo, Garrigues, AtlasDB and Gleeds.
The transaction, worth 23 million euros, is the first acquisition from Round Hill Capital's landmark European €1 billion+ PBSA joint venture with CPP Investments announced in November - demonstrating how the JV is acting with real pace, while adding to the 1,150 student beds already acquired by Round Hill Capital in Iberia.
It is further evidence of the demand for high quality PBSA housing in continental Europe driven by a structural shortage in key university cities such as Valencia.
“We are at a time of opportunity in Valencia given the increase in the number of students, the shortage of beds and the lack of land to develop PBSA projects. This project is positioned as a benchmark in the city of Valencia given its strategic location in the university area. At CBRE Valencia we are very satisfied to have advised on the operation, which has allowed us to value the asset and find an optimal solution for both parties ”, explains Jose Ángel Sospedra, CBRE Spain's Eastern Region Territorial Director.
The acquired asset, designed by TCH Arquitectura and Morph Estudio, to be delivered by Atitlán and Área Desarrollo, will consist of 250 student-oriented hotel-style apartments in a city with a shortage of quality student accommodation. It is located 200m away from the main city campus of the Polytechnic University and the University of Valencia. On the other hand, construction works are scheduled to start in 2022.
Nido Student will be the brand in charge of mobilizing and managing the asset. Currently, the firm manages 24 student residences throughout Europe, with more than 5,000 beds, and has more than 3,000 beds that will be launched in the coming years, including a 500-bed one in Aravaca, Madrid.
"This new promotion in Valencia is intended to benefit many students who wish to study at two of the most sought-after universities in Europe and will constitute an excellent addition to our expanding portfolio with CPP Investments. Leveraging our local team in the Iberian Peninsula, we plan to continue generating value with new acquisitions in the years to come" says Brian Welsh, Round Hill Capital Student Director.
Óscar Bernaldo de Quirós, head of Iberia at Round Hill Capital, adds that Round Hill is "delighted to partner with Atitlán and the Desarrollo Area, quality partners with extensive local experience, to offer much-needed student-centered accommodation in Valencia. By doing so, we can commit ourselves to acquiring a high-quality product, with significant measures mitigation of risks in the development management process. We look forward to further expanding this collaboration throughout the region. Round Hill Capital remains committed to providing much-needed accommodations throughout Southern Europe, with a deep focus on environmental well-being and social ".
"This project is a clear example of the benefits of joining forces in real estate developments. In this case, we combine the financial experience of a first-rate firm like Atitlán, with the knowledge of the real estate market and the capacity to generate business that it provides. the Development Area team, resulting in the agreement with a high-caliber international investor such as Round Hill Capital and CPP Investments ", concludes José Luis Palau, general director of the Development Area (Simetría group).
