Savills has advised Commerz Real on the acquisition of a 743-bed student accommodation block on Carrer de Pallars, Barcelona for an undisclosed price.
The transaction is the largest single asset student transaction in Spain this year.
The 26,000 sq m asset, which was purchased from Henderson Park, is being developed by Hines and is located in the 22@ district in the centre of Barcelona. The area, which was originally marketed as a new tech and innovation district, has seen enormous levels of investment and development in recent years, with a number of high profile residential and student accommodation projects being developed there. This area also has excellent connections to the rest of the city, is home to an array of business schools and is a short distance from the beach.
James Snaith, Director, Operational Capital Markets, Savills, commented: “This is a significant transaction for our client, Commerz, as their first foray into the Iberian residential market via the Commerz Real Institutional Smart Living Europe Fund.
“The prime position of the asset, in the heart of Barcelona’s innovation district, was an attractive proposition for Commerz and highlights the ongoing demand for operational assets in Spain and across Southern Europe.”
According to Savills Global Living report, pre-Covid investment into the student accommodation sector grew considerably in recent years, increasing 135% between 2014 and 2019.
The scheme is due to open in 2022, ready for the start of the academic year in September.