Round Hill Capital announces trio of investments in Spain

Round Hill Capital continues to expand its real estate portfolio across Europe, adding 1,228 beds in a trio of new investments worth €183m.

Principe hotel in Spain, one of Round Hill Capital's investments | PBSA News
Principe hotel in Spain, one of Round Hill Capital's investments.

Round Hill Capital, an integrated global specialist real estate investor, developer and manager, continues to expand its real estate portfolio across Europe adding 1,228 beds in a trio of new investments worth €183m to key cities in Spain, further expanding the firm’s growing real estate portfolio in Iberia.

“The latest announcements highlight our commitment to deliver high quality accommodation in line with market demand, and firmly establishes Round Hill Capital as a leader in the European sector. Our 20 years of experience ensures we can deliver intelligent investments.”

Michael Bickford, Founder and CEO, Round Hill Capital

The trio of investments include The Hotel Florida Norte, a 400-bedroom hotel near Plaza de España in Madrid, which will be redeveloped into one of the largest modern accommodation spaces in the city centre and targeted to students and young people. It also includes two new purpose-built student accommodation (PBSA) developments in Seville and Madrid, which will add an additional 593 student beds to Round Hill Capital’s portfolio on behalf of Round Hill European Student Accommodation (RHESA) fund, the €1bn+ European PBSA joint venture with Canada Pension Plan Investment Board (CPP Investments).

Since inception in 2002, Round Hill Capital has managed $13bn in real estate on behalf of institutional and private investors, and over 140,000 residential units and student housing beds.

“With an integrated approach, our on-the-ground teams are able to invest in and produce high-quality accommodation that responds to the evolving needs of customers by creating smarter spaces through innovative technology.” 

Michael Bickford, Founder and CEO, Round Hill Capital

The trio of investments

Round Hill Capital has acquired a 24,000 sqm vacant, freehold hotel located in prime central Madrid, with a projected total investment over €120m. The building will be refurbished to create a flagship aparthotel scheme designed to provide accommodation for students and young people.

To be developed by Ruesma and designed by Morph Estudio, the space will include food and beverage spaces, a gym, co-working space, and an interior garden. The asset is in front of Principe Pio train station and shopping centre, has direct access to a bus stop and is close to a public bike station.

The second investment is for the forward funding of a 180-student bed residence in Madrid worth €30m. This will be developed by Alta Real Estate in collaboration with Grupo Ibosa and is designed by Morph Estudio working closely with Nido Student. The PBSA is located near the Plaza de Castilla, a district close to universities including the recently opened IE university tower. Public transport services include the Plaza de Castilla hub and the Chamartin train station, with metro, local and regional connections. The Castellana 200 shopping centre which includes the Real Madrid stadium is a ten-minute walk from the scheme.  

The third investment is a fully operational asset in Ramon Carande, Seville, which was purchased by Round Hill Capital in early June for €33m. The asset comprises 413 student-beds with amenities including study rooms, a gymnasium and a rooftop with swimming pool. Located within walking distance of the two main city campuses of the University of Seville and adjacent to the EUSA University, it is also a ten-minute walk to the city centre. Round Hill Capital plans to make improvements to the PBSA asset to deliver its full potential, including the creation of new outdoor spaces and common areas.

The PBSA investments are part of a €1bn+ European joint venture with CPP Investments, forming one of the largest Pan-European student accommodation mandates.

“We are pleased to expand our portfolio with CPP Investments in Southern Europe with these three investments, adding over 1,228 high-quality beds to our existing portfolio in Iberia and reinforcing our offer across the continent. We are continuing to seek out new opportunities across other key cities in Spain, Italy and Portugal to strengthen our presence across the region and build on our success.”

Oscar Bernaldo de Quiros, Head of Southern Europe Investment, Round Hill Capital

Round Hill Capital’s international operating platform, Nido Student, will mobilise and manage the recently acquired PBSA assets. Nido manages over 5,000 beds across the UK, Germany and Ireland and focuses on wellbeing, design, technology and sustainability.

The hotel in Madrid transaction was advised by Ashurst, Jose Antonio de la Torre and Gleeds on the buy side, with Mundhotel, Garrigues and JM Rodriguez Prada on the sell side. The forward funded PBSA Madrid investment was advised by Ashurst and Hill International on the buy side, with CJO and Savills on the sell side. The PBSA Seville transaction was advised by Ashurst, Deloitte and Hollis on the buy side, and BDO and Arcano on the sell side.