PGGM Infrastructure Fund has entered into a definitive agreement to acquire the leading Spanish student accommodation group RESA (Residencias de Estudiantes en España) from Greystar, AXA IM Alts and investors represented by CBRE Investment Management.
The acquisition of RESA further strengthens PGGM’s positioning within the social infrastructure. PGGM’s Infrastructure Fund has a long track-record in the student accommodation sector having built a strong and successful partnership with UPP in the UK 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).
Stuart Bousfield, Investment Director at PGGM Infrastructure: “RESA is Spain’s leading student accommodation portfolio, with more than 30 years of track-record, an excellent management team in place and considerable growth potential in one of Europe’s most undersupplied student housing markets. It will provide stable and inflation-linked returns to our clients like pension fund PFZW.’’
Natasha Mol-Knechtel, Head of PPP and Social Infrastructure investments at PGGM adds: “Affordable and high-quality student accommodation is essential for a functioning education and social system and with the acquisition of RESA we are advancing our sustainable development agenda.’’
Juan Manuel Acosta, Managing Director – Spain, Greystar, said: “We entered the Spanish residential real estate market in 2017 with the acquisition of RESA. Alongside our partners, we have added significant value and grown the portfolio to the multi-award-winning sustainable portfolio it is today. This would not have been possible without the hard work and dedication of the RESA team members who are committed to ensuring residents have the best experience at university – even during the pandemic. Moving forward, we will continue to grow our portfolio of residential and student housing assets in southern Europe via discretionary capital and other ventures.”
Line Verroken, Investment Director at CBRE IM, said: ”Since our entry into the Spanish student housing sector in 2017, we have seen a tremendous consolidation and growth opportunity as well as a strong institutionalization of the sector. We are proud to have supported the growth of RESA into a market-leading platform and are very thankful for the dedication and hard work of Greystar and the RESA employees.”
The deal comes after a structured process involving a large number of potential buyers.
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.
Garrigues advised the sellers (AXA IM-CBRE IM-Greystar) with a team comprising partners Álvaro López Jorrín, Arnau Tapias, Héctor Muñoz, Jorge Juan García-Pellicer, Eduardo Abad, Pilar Navalón and David Arias, together with principal associate Fernando Santos.
