Belgian REIT Xior announced on Wednesday that it has made €171 mln of new investments in Spain and Portugal as part of its expansion strategy in the Iberian region.
Xior, which made its first move in Iberia in March of this year, said that the deals involve an operational residence (The Lofttown) and a project (Project Collblanc) in Barcelona encompassing a total of 206 units. The total investment value is €41.0 mln and is expected to generate stabilized gross yields of 7.0%.
In Portugal, Xior bought a portfolio of student residences and projects in Porto and Lisbon encompassing 1,900 units. The so-called U.hub portfolio consisting of two operational student residences (U.hub Alameda and U.hub Alvalade, both in Lisbon) and four projects, two of which (the Asprela project in Porto with approx. 450 units and the Benfica project in Lisbon with approx. 350 units) have been granted a construction license and are already under construction. They are expected to reach completion in 2020.
The two other projects (Lumiar in Lisbon with approx. 500 units and Boavista in Porto with approx. 500 units) are still in the process of obtaining permits and are expected to be completed in 2021 and 2022.
The total investment value is €130.0 mln with an expected stabilised gross yield of 9.5%.
In addition, Xior said that it has committed to acquire 85% of the company that manages the rental operations of the up-and-running residences in Portugal. 'This partnership puts the rollout of the Xior brand in Portugal on the fast track, and provides Xior with the indispensable local on the ground expertise to optimally structure its activities in Portugal “in-house”,' the company said in a statement.
As part of its expansion strategy in the Iberian region, Xior has hired Bastiaan Grijpink as country manager Iberia as well as as chief investment officer. Grijpink, who will join the group from January 2020, has worked as an investment banker with JP Morgan for 10 years. Until October of this year he has spent four years as partner and portfolio manager at Maven Securities, a London-based investment fund.