Amro, IPIM and Heed Capital acquire Valencia PBSA

Amro Partners, IP Investment Management (IPIM) and Heed Capital partnership acquires a new €30m GDV purpose-built student accommodation project in Valencia, Spain.

Valencia student accommodation development. Amro Partners, IPIM and Heed Capital have acquired the scheme | PBSA News
Valencia student accommodation development. Amro Partners, IPIM and Heed Capital have acquired the scheme.

A partnership consisting of Amro Partners, IP Investment Management (IPIM) and Heed Capital has acquired a new €30m GDV purpose-built student accommodation (PBSA) project in Valencia, Spain.

The project will deliver 221 new student beds on a c.2,000 sqm site just outside the city centre, in newly regenerated Avenida del Puerto, which is within walking distance of five universities: European University of Valencia; University of Valencia; University Polytechnic of Valencia; University Catholic of Valencia; and International University of Valencia.

Shared modern amenities at the scheme include a swimming pool, gym, rooftop terrace, green spaces, canteen and study rooms. The development will target maximum ESG credentials including BREEAM Outstanding, Fitwel 3* and WiredScore platinum certifications. Following Amro’s NZC2025 pledge, the scheme will seek Passivhaus status, making it one of the most sustainable new buildings in Spain and continental Europe on completion in early 2026.

“We are delighted to undertake our third transaction with IPIM. This is the first of several acquisitions we expect to announce in the coming months as we scale up our presence in the European PBSA sector. The Iberian student housing market remains structurally undersupplied, and despite challenging market conditions we’re continuing to see attractive investment opportunities in cities such as Valencia, where demand is strong and growing.”

Raj Kotecha, Co-Founder, CEO, Amro Partners

During the 2021/22 academic year, Valencia’s total student population was over 103,000, with international students accounting for approximately 12% of the total. Valencia also recorded the highest year-on-year student enrolment growth of all provinces at 2.9%.

According to JLL’s Student Housing Report published in November 2022, Valencia is the city with the lowest PBSA stock level and highest supply/demand mismatch in the Spanish market, with an estimated 28:1 ratio of students in need of housing to beds.

Valencia will be IPIM’s second Iberian PBSA project since the company expanded into mainland Europe following the launch of its Iberian Student Living fund in 2021, a fund incorporated in Portugal and managed by Heed Capital.

“We are thrilled to have acquired the Valencia development site as it is a rare opportunity for us to expand into a tier one Spanish PBSA market in which we have a strong conviction. The project’s prime location and proposed design will add a premium PBSA development to our growing portfolio of Iberian assets. We continue to see opportunity in the PBSA sector in both Spain and Portugal and expect this to be the first of several acquisitions for us in 2023.”

Selina Williams, Executive Director, IPIM

In December 2022, the partnership closed €7.5m development financing with Alteralia Real Estate Debt, a fund managed by Alantra, to finance the development of its student housing project in Porto, Portugal. The Porto project is set to open in January 2024, in time for the second semester start of the 2024/25 academic year. The 151-bed BREEAM Outstanding-rated asset will be operated under the Amro Estudiantes brand.

The investment capital is from a joint venture of two parallel funds – a Singapore-domiciled Iberian Student Living (SF-1) and a Portugal-domiciled Iberian Student Living (FCR). All ISL FCR fund investors have the potential to qualify for EU citizenship via the Portuguese Golden Visa programme. The Funds are managed and advised by IPIM as investment manager, while Amro Partners is the appointed transaction and development manager with its affiliate, Amro Estudiantes as PBSA operator.

“The attractiveness of the Valencian market, coupled with the characteristics of the site just acquired, allowed us the meet our strict investment criteria. The ability of our partnership spanning two continents to complete this acquisition and to push forward the Oporto development make us confident of being able to achieve even better results in the future.”

Joaquim Luiz Gomes, Founder and Managing Director, Heed Capital