#Spain #Madrid #EQT Exeter #Azora

EQT Exeter Finalizes Sale of Student Housing Portfolio in Spain

In a notable transaction reflecting the ongoing growth potential in the Spanish real estate market, EQT Exeter has completed the sale of a portfolio that includes 12 student housing assets, totaling approximately 4,100 beds, to a vehicle managed by Azora. This acquisition not only marks the first sale of EQT Exeter's living assets in Spain but also underscores the rising demand for high-quality student accommodations in the region.

Initially launched in May 2021, EQT Exeter's portfolio began with just two properties catering to around 1,500 students. Since then, the expansion has been substantial, with the portfolio now comprising significant assets located in key cities such as Madrid, Barcelona, Seville, Málaga, and Granada. By the two-year anniversary of the joint venture formed with developer Grupo Moraval, the portfolio has achieved the status of the fourth-largest student housing collection in Spain.

Tom Livelli, Partner and Head of Living Strategies in Europe for EQT Exeter, emphasized the strong demand for quality student housing, driven by robust market fundamentals and Spain’s economic growth. He stated, “Spain remains a top investment destination, a fact highlighted by the structural undersupply of student accommodations. This portfolio shines a light on EQT’s comprehensive approach to investment, development, and operations.”

Underlining the strategic importance of this move, Carlos Molero Sánchez de la Blanca, Managing Director at EQT Exeter, remarked that the sale illustrates the effectiveness of their 'local with locals' approach to investing. This philosophy involves a meticulous understanding of student needs and a focus on the quality and sustainability of each asset. The properties featured in the portfolio achieved high sustainability standards, including several buildings earning the prestigious LEED Platinum certification, a first for student accommodations in Europe.

Azora's acquisition signifies its re-entry into the Spanish purpose-built student accommodation (PBSA) sector. Having previously been a leading force in the market over a decade ago, Azora plans to use this portfolio as a cornerstone for building a more extensive Southern European operation. José Alonso, Partner at Azora, emphasized, “With the ongoing shortage of student housing, now is the ideal time to reenter the PBSA sector, and we believe this acquisition aligns perfectly with our high standards.” Azora aims to scale up its operations to include approximately 10,000 beds across Southern European locations.

This strategic move by both EQT Exeter and Azora illustrates the dynamic nature of the student housing market in Spain and highlights the ongoing challenges and opportunities presented by student accommodation shortages in key regions. The portfolio showcases state-of-the-art technology and high-quality living environments, with a commitment to sustainability integral to both companies’ operational strategies. Furthermore, the partnership emphasizes collaboration with local developers to meet the community's educational housing demands effectively.

As the market continues to evolve, stakeholders in the student housing sector are keenly observing how these developments will shape the landscape of accommodations for students in Spain and beyond, particularly in the context of a broader European market that is increasingly recognizing the significance of specialized real estate investment strategies.

Both EQT Exeter and Azora were supported in this transaction by leading industry advisors, ensuring that strategic interests were fully aligned throughout the sale process. The collective goal remains clear: to not only address the immediate needs of students but to also contribute meaningfully to sustainable urban development in rapidly growing educational hubs.

With this transaction, EQT Exeter not only highlights its investment acumen but also its commitment to enhancing student living conditions, reflecting a comprehensive strategy for growth in Europe. As such, this sale is likely to serve as a benchmark for future transactions within the student housing sector across Europe.