Spain: Real estate fund manager IP Investment Management [IPIM], in partnership with Heed and Amro Partners, has secured development financing for a 221-bed PBSA development in Valencia with a €19.15 million, three-year development facility funded by FERED – the European real estate debt fund of asset management firm Fiera.
It is the second loan facility extended between Fiera and an Amro-managed PBSA deal, following the completion of another prior development loan for Amro’s Alicante PBSA project in March.
Amro Valencia Puerto is Amro’s second PBSA scheme in Valencia and tenth in Iberia, after making its first investment in 2012. The €30 million [GDV] development, where construction commenced in April and will complete in December 2025, is said to be one of the most energy-efficient PBSA projects in the country.
The project represents the €25 million Iberian Student Living Fund’s first foray into Valencia’s student market and the second investment within Iberia for IPIM and Heed.
The first investment was a 151-bed student housing scheme in Porto, Portugal, also in partnership with Amro. The Porto asset completed construction in December and welcomed its first residents in January.
Amro Valencia Puerto is designed to reduce whole-life carbon emissions at the embodied carbon and operational phases as part of Amro’s net zero strategy. Integrated passive strategies will be adopted at the fully-electrified development, with targeted certifications in recognition of its ESG credentials including BREEAM Outstanding, EPC A++, Fitwel Three Star and Platinum WiredScore – the highest possible standards.
The building will be operated by Amro’s student housing operating platform Amro Estudiantes and is located less than 15 minutes from The University of Valencia by public transport, where there are over 55,000 students. A further five universities are reachable in 30 minutes via public transport.
FERED, Fiera’s flagship pan-European debt fund, is part of Fiera Capital’s global real estate credit product offering, where a further $2 billion assets are under management in North America and Asia.
Richard Howe, co-head of Fiera’s European real estate debt business, said: “We are delighted to continue our relationship with Amro, through which we are lending to a market-leading sponsor and best-in-class real estate with the strongest ESG credentials. The growing weight of institutional capital in the Spanish PBSA market speaks to its attractive underlying fundamentals, where there is a structural undersupply of professionally managed and contemporary student housing against a backdrop of a growing student population, from a domestic and international standpoint.”
Raj Kotecha, co-founder and CEO of Amro Partners, said: “Our ESG-focused strategy continues to attract the highest quality global lenders and we’re pleased to be working with Fiera Capital again to bring this BREEAM Outstanding new PBSA project to fruition. Demand for dedicated student accommodation in Valencia is extremely strong and we have a proven track record of delivering best-in-class PBSA assets in this exciting and vibrant city.”
Selina Williams, executive director of IPIM, said: “Fiera Capital’s commitment to lend on IPIM’s first PBSA investment in Valencia is testament to our shared recognition of the strong underlying fundamentals of the sector. The sustainability credentials and best-in-class lifestyle amenities will make this development a highly desirable option for students in Valencia seeking an unparalleled residential experience.
“We are delighted to be raising the bar for environmentally-responsible and community-focused student housing,” she added.
Gustavo Guimarães, board member of Heed Capital, said: “Heed Capital has taken another important step towards the development of a new student accommodation project in the city of Valencia, funded by one of our managed funds. The collaboration with IPIM, Amro and Fiera Capital represents a significant contribution to the success of this project and, undoubtedly, to the maturation of the local market.”
Ami Kotecha, co-founder and president of Amro Partners, will be speaking on a panel about ‘The development landscape – finance, investment and planning’ on the main stage at the 2024 Urban Living Festival on 18-19 September at London’s Mary Ward House. Buy your tickets now at this link.
