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Spain/Portugal: Lender Aareal Bank has arranged a €210 million club loan to finance 10 student housing assets for Nido Living.
The financing will support Nido Living and its shareholder, the Canada Pension Plan Investment Board, in strengthening its existing platform – where demand for PBSA across Spain and Portugal remains “significantly above” supply.
Nido’s Iberian PBSA portfolio comprises around 3,000 student rooms across 10 assets located in Madrid, Seville, Valencia, Lisbon, and Porto, all operated under the Nido brand.
The majority of the properties hold BREEAM Very Good certifications, which qualify most of the loan as green financing in accordance with Aareal Bank’s Green Finance Framework.
Benjamin Walter, head of alternative living properties at Aareal Bank, said: “The European PBSA sector is increasingly attractive for its stable occupancy rates, resilient demand, and long-term, inflation-protected income streams. We are honoured to support this new partnership with Nido Living and CPP Investments in delivering high-quality, sustainable student housing in some of Iberia‘s most attractive university markets across Spain and Portugal.”
Ryan Lee, CFO at Nido Living, added: “We are delighted to have successfully closed this financing in partnership with Aareal Bank. Their deep understanding of the student accommodation sector and ability to navigate the complexities of a cross-border, multi-asset transaction were instrumental in achieving this outcome. The team’s strategic guidance and execution capabilities have proven invaluable throughout the process.”
Nido was advised by Eastdil Secured L.L.C as sole financial advisor, Clifford Chance as legal advisor and PJLM.
Aareal’s advisory team included Slaughter & May, Cuatrecasas, Uria, and Elvinger Hoss Prussen.
Knight Frank acted as valuer for the portfolio.
Highlights:
• Aareal Bank has financed €210 million for 10 Nido Living student housing assets in Spain and Portugal.
• Nido’s Iberian PBSA portfolio totals 3,000 student rooms across Madrid, Seville, Valencia, Lisbon, and Porto.
• The majority of assets are BREEAM Very Good certified, qualifying most of the loan as green financing.
• Advisors included Eastdil Secured, Clifford Chance, PJLM, Slaughter & May, Cuatrecasas, Uria, Elvinger Hoss Prussen, and Knight Frank.
