SPAIN

We were tasked with researching and providing a strategic buy-in plan for student investment in Spain.

We had a free hand on location, the only stipulation was targeting any investment assets that would yield gross around 3.5%.

We reviewed the three following locations:

Barcelona Barcelona, the jewel of Catalonia, is a city that has it all. With its impressive architecture, from Gaudí's masterpieces to the majestic Barcelona Cathedral, it boasts a rich cultural scene: music festivals, theatre, and art at every turn. Home to prestigious universities like the University of Barcelona (UB) and the Autonomous University of Barcelona (UAB), it offers a wide range of academic programs and research opportunities. Plus, its Mediterranean climate, golden beaches, and lively nightlife make it an unparalleled destination for a unique university experience.

Madrid As the capital of Spain, Madrid is a fusion of cultures, where the old blends with the new in a symphony of life and energy. Its streets exude history, from the Royal Palace to the Retiro Park where you can picnic with your future mates. And world-class cultural activities like the Prado Museum and the Reina Sofía Museum are treasures of art and culture. And most importantly, Madrid is also a top-notch academic center, with institutions like the Complutense University of Madrid and the Polytechnic University of Madrid, attracting students from around the world in search of educational excellence. With endless nightlife, delicious cuisine, and a wide range of cultural activities, Madrid offers an incomparable university experience. The public transportation system like the metro is one of the best in Spain.

Valencia Valencia, the city of light and joy, is a Mediterranean paradise that combines history and modernity in perfect harmony. With its futuristic architecture, like the City of Arts and Sciences, and its charming old town, Valencia captivates students and visitors alike. The University of Valencia and the Polytechnic University of Valencia offer quality education in an inspiring environment. In addition to its well-focused academic programs, Valencia offers a dynamic student life, with active cultural life, sports events, and a gastronomic scene not to be missed. It has one of the best climates in Spain, quite sunny, with beaches and a welcoming atmosphere. Valencia is the perfect destination to fully experience student life in Spain. It's also worth mentioning that it's the 46th most affordable student city in the world.

On the market as a whole, over €12bn is to be invested in purpose-built student accommodation (PBSA) over the next two to five years, led by Spain, Italy, Germany, France, and Portugal.

Spain, Italy and Portugal are all markets where there is limited provision of PBSA currently (less than 10%), highlighting the significant growth potential of these markets.

Primary concerns revolve around economic growth, interest rates, and inflation, along with an increasing focus on environmental sustainability.

Our acquisition steered towards Barcelona.