Brookfield Asset Management, through its Strategic Real Estate Partners III (BSREP III) fund, has formed a joint venture with Temprano Capital Partners to enter the Iberian student residence market.
The JV has taken ownership control of Temprano, which was founded by Neil Jones and James Preston, and agreed to enter into 25-year net leases for 19 purpose-built student housing assets across Spain and Portugal with CESH, CPA®:18 – Global, affiliates of a US-based publicly traded REIT, and partners.
The joint venture has also secured a purchase option to acquire the assets at a later date. If all such purchase options are exercised under the terms of the agreement, this will amount to ownership of more than 8,000 beds across Spain and Portugal.
As part of the transaction, the joint venture has taken immediate operational control, through the triple-net leases, of three assets. These assets include: Collegiate Madrid Aravaca; Collegiate Marina Real, Valencia and Livensa Living Barcelona Diagonal Alto. Collectively, these three assets comprise almost 1,000 operational beds in Spain and Portugal and will continue to be managed by Collegiate and CRM.
In separate transactions, an additional 1,000 beds have been secured by BSREP III and Temprano through other projects, bringing the total pipeline to more than 9,000 beds. The partners have also allocated additional capital to the Joint Venture to further grow the business.
The Livensa Living brand, which undertakes sales and marketing services to Livensa Living Barcelona Diagonal Alto and Livensa Living Porto Campus, will remain as the Livensa Living Brand under the JV's control.
'As one of the largest investors in the living sector in Europe, Brookfield has acquired and built businesses with 60,000 units in operation or under development across Europe,' said Brad Hyler, managing partner within Brookfield’s real estate group. 'We are thrilled to expand into the Iberian market, which we believe will continue to benefit from growing demand, alongside a strong local partner with proven capabilities.'
A spokesman for Temprano added: 'We are delighted to partner with an investor such as Brookfield which will allow Temprano to consolidate and grow its position as one of the key owners and developers of purpose-built student housing in Spain and Portugal. This is a high-quality portfolio of freehold assets, in which Temprano has intimate knowledge, located across the main university cities of Iberia. The combination of Temprano’s and Brookfield’s experience in student accommodation will, we believe, enable us to provide the very best housing solutions to our students. Our activities in other sectors such as retail will continue.'