The PGGM fund has entered into a definitive agreement to acquire RESA, a Spanish group with nearly 11,500 beds in the student residence sectorGreystar, AXA IM Alts and investors represented by CBRE Investment Management.
The acquisition of Resa further strengthens PGGM’s position in the social infrastructure sector. The fund has a long history1 in the student accommodation sector, having established a strong and successful partnership with UPP in the UK for over 10 years, of which PGGM is the majority shareholder with a 60% stake.
Under the association of Greystar, AXA IM Alts and CBRE IM during the period 2017-2022, Resa has become the largest student residence platform in Spainwith around 11,200 beds in 21 key student cities, including Madrid, Barcelona and Valencia, and has expanded its portfolio from 33 residences to 43 (40 are currently in operation and three are in development, with openings planned for 2024 and 2025).
“RESA is the leading portfolio of student residences in Spain, with over 30 years of experience, an excellent management team and considerable growth potential in one of the least supplied student residence markets in Europe. It will provide our clients with stable, inflation-linked returns, like the PFZW pension fund,” he says. Stuart Bousfield, Chief Investment Officer at PGGM Infrastructure.
For its part, Natasha Mol-Knechtel, Head of Investments at PPP (Public-Private Agreements) and PGGM’s social infrastructure investments argue that the sector must grow to provide a solution to the demand for “Affordable and Affordable Student Housing high quality is essential for the educational and social system to function. With the acquisition of Resa, we are moving forward in our sustainable development program,” he said in this regard.
“We entered the Spanish residential market in 2017 with the acquisition of RESA. Together with our partners, we have added value and achieved the growth of the current multi-award winning portfolio. This would not have been possible without the hard work and the dedication of Resa’s team members, committed to providing the best experience for its residents even during the pandemic. we will continue to develop our portfolio of residential and student housing in Southern Europe through discretionary capital or other formulas”, comments Juan Manuel Acosta, Managing Director of Greystar Spain.
“Since entering the Spanish student accommodation sector in 2017, we have seen a huge opportunity for consolidation and growth, as well as a strong institutionalization of the sector. We are proud to have accompanied the growth of Resa to make it the market-leading platform and we are very grateful for the dedication and hard work of Greystar and Resa’s employees.” Line Verroken, Chief Investment Officer at CBRE IM.
The operation takes place after a structured process in which a large number of potential buyers have participated. Closing of the transaction is subject to the approval of the Spanish competition authorities. BBVA (M&A and Debt Advisory), Freshfields Bruckhaus Deringer (Legal), KPMG (Financial and Tax) and Savills (Technical) advised PGGM on the acquisition. Eastdil Secured (M&A), CBRE (Commercial), Garrigues (Legal and Tax), Deloitte (Finance), Arcadis (Technical) and Longevity advised AXA IM Alts, CBRE IM and Greystar in the sale.