Belgium's Xior enters Iberia with 3 student housing deals totalling €54m

Belgian student housing REIT Xior has acquired a student residence in Spain and two projects in Portugal for a total €53.7 mln in a move which adds Iberia to the company’s Benelux-focused portfolio.

In Spain, Xior has signed an agreement to acquire a student residence on the new Diagonal-Besòs campus of the Universitat Politècnica de Catalunya in Barcelona. In Portugal, it has reached an agreement on the development of two projects in Lisbon and Porto as part of a joint venture. Once the proposed development is completed, these transactions will have a total investment value of approximately €53.7 mln.

Commenting on the move, Xior CEO Christian Teunissen said: ‘By acquiring these three state-of-the-art student complexes, Xior is adding two new countries to its portfolio and further implements its growth strategy as a pure player in student housing into two interesting European markets. This allows us to expand our range further and to offer suitable housing to our students in an ever increasing number of student towns.’

He added that  Xior will aim to develop a portfolio in Spain and Portugal exceeding €250 mln in due course.

The Campus Diagonal-Besòs residence is being acquired for around €25.5 mln with an expected gross initial yield of approximately 7%. It is a brand new complex located on the recently opened new campus of the Universitat Politècnica de Catalunya situated near the beach and the 22@ district. The residence provides 191 self-contained rooms and modern facilities such as an in-house restaurant, a gym, study rooms, a swimming pool and a roof terrace.

The Lisbon project involves the development of a student residence providing 124 units (254 beds) and 14 parking spaces on a fully-owned greenfield site. The project will be carried out in a joint venture with Promiris, a Belgian firm with which Xior has partnered on schemes in Belgium in the past. A 12-year triple net lease has been agreed for the residence with Odalys Portugal, a subsidiary of French group Odalys which specialises in  holiday homes, student housing and short-stay residences in southern Europe.

The Porto project will involve redeveloping an existing, wholly owned building into a student complex with 211 units (420 beds). The transaction also includes 16 residential apartments to be realised as part of the project. Odalys Portugal will also act as the operator and tenant for this residence on a triple net basis.

The total investment value of both projects is approximately € 28.2 mln. The expected gross initial value is 8%.


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