Xior acquires Student Residence in Campo Pequeno from TPG/Round Hill Capital for €58M

Belgian real estate company Xior has acquired a student residence located in Campo Pequeno, Lisbon, from TPG and Round Hill Capital for approximately €58 million.

The 380-bed residence, which opened in September 2022, is strategically located in the heart of Campo Pequeno, close to public transportation, major access routes, and universities. Spanning 17,000 square meters of gross construction area above ground, the property was developed through a joint venture between TPG and Round Hill Capital. Its sale marks the completion of the strategic planning for this partnership project.

CBRE acted as an advisor to TPG and Round Hill Capital on this transaction. Igor Borrego, Head of Capital Markets at CBRE Portugal, stated in a press release that «this transaction demonstrates the attractiveness of the student housing sector in Portugal. Lisbon has the fewest beds available per student of any European capital, and the imbalance between supply and demand is quite evident. Therefore, when good opportunities arise with operating assets, it is natural that they generate a great deal of interest and appetite from major investors and operators. This transaction represents a significant milestone in the market, setting a new record in terms of price per bed and a sign that real estate investment in quality assets continues to attract interest».

CBRE notes that the student accommodation sector (PBSA - Purpose Built Student Accommodation) has shown enormous dynamism in recent years, with several openings and transactions resulting from the sustained growth in the number of national students (4% per year over the past 3 years) and international students (6.2% per year over the past 3 years). Lisbon is, in fact, one of the European capitals with the fewest beds available per student, a ratio that represents approximately 2.1% compared to Madrid (5.1%), London (26%), or Amsterdam (28%).

Last year, CBRE closed other transactions of this kind that demonstrate the interest in this segment, such as the sale of the Milestone Olaias unit to M&G, the sale of Odalys units in Porto and Lisbon to Ageas, and the sale of the Xior Alvalade Unit to a private investor.

It is worth noting that the CBRE ESG team was also responsible for the BREEAM In Use Very Good certification of the building, «essential to meet the demands of potential buyers in the sales process».

Liliana Soares, Head of ESG & Sustainability at CBRE Portugal, comments that «there has been a notable increase in the interest of owners of this type of building in obtaining BREEAM In Use certification. As an international, independent, and widely recognized certification system, BREEAM demonstrates a clear commitment to sustainability. This commitment is visible in concrete measures such as energy management, water consumption, or the promotion of sustainable mobility, which this residence presents».