PGGM to Purchase Spanish Student Housing Platform RESA

Posted on 08/01/2022

PGGM Infrastructure Fund entered into a definitive agreement to acquire Spanish student accommodation group RESA (Residencias de Estudiantes en España) from Greystar Real Estate Partners, LLC, AXA IM Alts, and investors represented by CBRE Investment Management. The deal is estimated at 900 million euro. Greystar acquired the RESA brand in 2017.

The acquisition of RESA further strengthens PGGM’s positioning within the social infrastructure. PGGM’s Infrastructure Fund has a track-record in the student accommodation sector having built a partnership with UPP in the U.K. for more than 10 years, PGGM being the majority shareholder at UPP with a 60% equity stake.

Under the partnership of AXA IM Alts, CBRE IM, and Greystar during the 2017-2022 period, RESA has grown to become the largest student accommodation platform in Spain, with approximately 11,200 beds in 21 key student cities, including Madrid, Barcelona, and Valencia, and expanded from 33 residences to 43 (40 are currently in operation and 3 are under development, with expected openings in 2024 and 2025). The deal is conditional upon obtaining merger clearance approvals from the Spanish Antitrust Authorities.

BBVA (M&A and Debt Advisory), Freshfields Bruckhaus Deringer (Legal), KPMG (Financial and Tax DD), and Savills (Technical) advised PGGM on the acquisition.

Eastdil Secured (M&A), CBRE (Commercial), Garrigues (Legal and Tax), Deloitte (Financial), Arcadis (Technical) and Longevity advised AXA IM Alts, CBRE IM and Greystar on the sale.

Buy and Build
In November 2020, the same investor group vehicle (RESA) managed by Greystar acquired four freehold student accommodation assets in Spain’s tier one cities of Madrid, Valencia, and Málaga. The portfolio was comprised of 1,100 beds and was purchased from a joint venture between Urbania and Invesco Real Estate.

Keywords: CBRE Inc., AXA SA.

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