Round Hill Capital purchase 250-bed PBSA asset

Round Hill Capital purchases a 250-bed student accommodation asset in Valencia from Atitlan and Area Desarrollo.

Street view Atila HQ - Round Hill Capital | PBSA News
Street view Atila HQ.

Global specialist real estate investor, developer and manager – Round Hill Capital – announces it has acquired a new purpose-built student accommodation (PBSA) scheme in Valencia, Spain. CBRE, Gomez Acebo Pombo, Garrigues, AtlasDB and Gleeds advised on the deal.

The transaction, worth €23m, will deliver a new 250-bed scheme focused on serving the main universities in Valencia. This transaction continues Round Hill Capital’s rapid expansion of investing in new student accommodation across the primary and secondary Iberian cities.

“This latest acquisition demonstrates our continued strength in the student accommodation market, and the continuation of our investment strategy in key European cities like Valencia. As we emerge from the pandemic, and even long before it began, we have seen a growing appetite for high quality student accommodation across Europe. 

“This new development in Valencia aims to benefit many students looking to study at two of Europe’s most sought after universities and will make an excellent addition to our expanding portfolio with CPP Investments. By leveraging our on-the-ground Iberian team, we plan to unlock further value with additional acquisitions in the years ahead.”  

Brian Welsh, Head of Student, Round Hill Capital

The asset – designed by TCH Arquitectura and Morph Estudio – will be delivered by Atitlan and Area Desarrollo. The development will include 250 modern student-focused hotel-style apartments in a city with a severe shortage of quality student accommodation. Construction works are expected to start in 2022. 

“We are delighted to be partnering with Atitlan and Area Desarrollo, quality partners with vast local experience, to deliver much needed student focussed accommodation in Valencia. In doing so, we are able to commit to acquiring a high-quality product, with significant risk mitigation measures in place in the development management process. We look forward to further expanding this collaboration across the region. Round Hill Capital remains committed to delivering much needed accommodation across Southern Europe with a deep focus on environmental and social wellbeing.”

Oscar Bernaldo de Quiros, Head of Iberia, Round Hill Capital

The scheme is located 200 metres from the main city campus of Polytechnic University and Universidad de Valencia, and is well-served by public transport with a nearby tram station connecting it to the two universities. The city centre is within cycling distance and 12 minutes by public transport, with Malvarrosa beach located nearby.

“This agreement with Round Hill Capital demonstrates the enormous investor interest that exists towards our community from international entities of great prestige, but which require, in many cases, investment and local knowledge to execute. 

“Thanks to the extensive experience of Area Desarollo in developing real estate projects with high added value and high quality standards, we have been able to commit to contributing accommodation of this kind for the local area.”

Agustin Pérez, Director de Atitlan Real Estate (ARES)

International award-winning PBSA brand of Round Hill Capital – Nido Student – will mobilise and manage the acquired asset. Leveraging its decade of sector-specific knowledge and expertise, Nido has earned a market leading reputation for its focus on student wellbeing, design, technology and sustainability. Thanks to its continued on-the-ground research, Nido has become the preferred operator for pan-European student accommodation as it understands how to provide residents with a lifestyle that supports and builds positive communities. 

Nido currently operates 24 student residences across Europe comprising over 5,000 beds with an additional secured pipeline of 3,000+ beds that will be mobilised in the coming years, including a 500-bed asset in Aravaca, Madrid. 

“This project is a clear example of the benefits of joining forces in real estate developments. In this case, we combine the financial expertise of a top firm such as Atitlan, with the knowledge of the real estate market and business generation capacities that the Area Desarollo team provides, resulting in an agreement with an international investor of high calibre in Round Hill Capital and CPP Investments.”

José Luis Palau, General Manager Development Area (Grupo Simetría)

The announcement marks another major milestone for Round Hill Capital as it continues to build considerable momentum in the sector – with 40 PBSA acquisitions across Europe since 2002, including over 1,150 student beds in Iberia. The deal comes after Round Hill Capital recently announced a record €1bn+ joint venture with Canada Pension Plan Investment Board (CPP Investments). The partnership is one of the largest Pan-European student accommodation mandates in history.