A French SCPI buys a student residence located in the historic center of Granada, specifically on Mano de Hierro street, advised by the capital markets alternatives assets department of BNP Paribas Real Estate and L’Etoile Properties.
The operation is part of a Sale & Leaseback agreement with Students Suites Europe. In this way, the latter will be the lessee of said residence, operating it under a rental contract with a long period of mandatory compliance.
The residence has 56 individual rooms. Thus, Students Suites Europe responds to this strong demand by updating the classic concept of student residence.
"The segment of student residences is in the process of consolidation and with a clear focus on a better quality offer. This Sale and Leaseback operation shows the support and interest of real estate investors through its injection of capital in a model of a business that seems sustainable to them, "says Benjamín Gomez, head of capital markets at BNP Paribas Real Estate Spain.
In the past two decades, the international student housing industry has seen growth thanks to demographic trends. Among the decisive factors are that the student population is increasingly extensive, mobility among Spanish students has progressively increased, while there is a significant number of international students that increases year after year.
In addition, the data of the report of the last quarter that BNP Paribas Real Estate produced on real estate investment shows that investments in alternative real estate assets are gaining more weight. Thus, this segment represents 8% of real estate investment with 263 million euros.