UK: Round Hill Capital has invested €200 million in the acquisition of Smart Studios.
The deal includes nine assets comprising 2,013 beds. It is the largest PBSA and coliving transaction in Portugal this year, and was completed by the Round Hill European Student Accommodation (“RHESA”) partnership, the European PBSA JV between CPP Investments and Round Hill Capital, which has created a 5,000-bed portfolio in just under nine months.
The portfolio is mostly concentrated in the Lisbon Metropolitan Area (88 per cent) with one asset in Oporto (12 per cent). Around 900 beds will already be operational this year under the Smart Studios brand across five residences, with the delivery of the remaining four buildings set to be completed between 2022 and 2025. Plans for the portfolio will have a strong ESG focus to improve energy consumption and social wellbeing for its tenants.
Founded in 2015 by Ricardo Kendall, Smart Studios is one of the largest Portuguese developers and operators of purpose-built accommodation, offering an all-inclusive concept of living for students and young professionals. In 2018, with a view to sustain the ambitious growth of the company, the shareholders of Smart Studios started a strategic partnership with LX Partners, to develop companies with strong growth potential.
Brian Welsh, head of student at Round Hill Capital, said: “This latest investment has accelerated our investment pipeline across major Iberian cities, reinforcing our leading role in building and investing in European accommodation solutions. Iberia continues to exhibit positive investment opportunities and the acquisition of Smart Studios reflects this. With the support of our integrated on-the-ground teams, we are confident we will continue to identify strong investment and development opportunities from PBSA and serviced apartments to senior living and co-living across the region in the near future.”
Ricardo Kendall added: “We are very pleased to have achieved such a great result of the sale process. We believe we have left Smart Studios in very good hands, with prestigious world class companies that are committed to the sector, and that intend to increase the offer and improve the quality of student accommodation with at least another 1,100 beds to be delivered in the next three years. I would like to express my gratitude to the Smart Studios team for their daily commitment to deliver such a great service to our clients and also thank the support of all those involved in the transaction.”
The transaction was advised by PBBR, JLL and Deloitte on the buy side, with CBRE, Savills, Arcadis and Morais Leitao on the sell side.
