Brookfield Asset Management has made its debut in the Iberian student housing market via its Strategic Real Estate Partners III fund, through a joint venture with Temprano Capital Partners’ founders.
The joint venture has taken ownership control of Temprano, which was founded by ex-Grosvenor Europe chief executive Neil Jones and James Preston, who formerly headed the Iberian operations at Rockspring Property Investment Managers.
The vehicle has agreed to enter into 25-year net leases with Temprano investor CESH for 19 purpose-built student housing assets across Spain and Portugal.
This includes a purchase option to acquire the properties at a later date. If this is exercised, it will amount to ownership of more than 8,000 beds across Spain and Portugal.
As part of the transaction, affiliates of the joint venture have taken operational control of three assets through triple-net leases. These are: Collegiate Madrid Aravaca; Collegiate Marina Real, Valencia and Livensa Living Barcelona Diagonal Alto.
Collectively, these comprise almost 1,000 operational beds in Spain and Portugal and will continue to be managed by Collegiate and CRM.
In separate deals, an additional 1,000 beds have been secured by BSREP III and Temprano through other projects, bringing the total pipeline to more than 9,000 beds.
The partnership said it has also allocated additional capital to the joint venture to grow the business.
Brad Hyler, managing partner of Brookfield’s real estate group, said the Iberian market will “continue to benefit from growing demand, alongside a strong local partner with proven capabilities”.
A spokesman for Temprano said: “This is a high-quality portfolio of freehold assets, in which Temprano has intimate knowledge, located across the main university cities of Iberia.
“The combination of Temprano’s and Brookfield’s experience in student accommodation will, we believe, enable us to provide the very best housing solutions to our students. Our activities in other sectors such as retail will continue.”
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