Round Hill Capital announces trio of accommodation investments in Spain

Round Hill Capital continues to expand real estate portfolio across Europe adding 1,228 beds in a trio of new investments worth €183mm, marking yet another significant milestone for the global real estate investment and asset management firm in its 20th anniversary year.

The redevelopment of the iconic Hotel Florida Norte, a 400-bedroom landmark hotel near Plaza de España in Madrid into one of the largest modern accommodation spaces in the city centre.

Two new PBSA developments in Seville and Madrid which will add an additional 593 high-quality student beds to its portfolio on behalf of Round Hill European Student Accommodation (“RHESA”) fund, the €1 billion+ European PBSA Joint Venture with CPP Investments.

23 June 2022

Round Hill Capital, a leading integrated global specialist real estate investor, developer and manager has highlighted its commitment to the Spanish accommodation sector by announcing a trio of targeted new investments in key cities.

The series of investments in its 20th anniversary year, include the acquisition of a historic 400-bedroom hotel set to become one of the largest modern accommodation spaces in Madrid, and two new purpose-built student accommodation (PBSA) developments in Madrid and Seville. Combined and once refurbished, this will add a projected 1,228 new beds to Round Hill Capital’s growing real estate portfolio in Iberia.
Bringing 20 years of success in building long-term social, sustainable and financial value across the globe, and delivering positive impact in the communities it invests in, Round Hill Capital identified the demand for quality Spanish accommodation driven by an increase in both domestic and international tourists and students.

The trio, worth a total of €183m in investment and development, are a testament to the accomplishments of Round Hill Capital’s investment offer and on-the-ground development team, as it continues to strategically grow its footprint with selected assets that will offer investors outstanding risk adjusted returns.

Madrid investment 1:
Round Hill Capital has acquired a 24,000 sqm vacant, freehold hotel located in prime central Madrid, with a projected total investment over €120m. The building will be refurbished to create a flagship aparthotel scheme specifically designed to provide accommodation with a focus on students and young people. To be developed by Ruesma and designed by Morph Estudio, the space will include F&B spaces, a gym, co-working space, and an interior garden.

The asset is located in front of Principe Pio train station and shopping centre, and is walking distance from hotspots such as the Plaza de España, Templo de Debod and the Royal Palace of Madrid. Well-served by public transport it is just 3 metro stops to Ciudad Universitaria, the largest student hub in Spain, with direct access to a bus stop and close to a public bike station. Once completed, the residence will allow customers to choose between rooms with views looking into Madrid city centre and rooms facing the Madrid Rio park.

Madrid investment 2:
A second investment for the forward funding of a 180-student bed residence in Madrid worth €30m has also been announced. This will be developed by Alta Real Estate, in collaboration with Grupo Ibosa, and is also designed by Morph Estudio working closely with Nido Student. The residence is located near the Plaza de Castilla, an attractive district close to Madrid’s most important universities, including the recently opened IE university tower. It also benefits from key public transport services including the Plaza de Castilla hub and the Chamartin train station, offering metro, local and regional connections. The Castellana 200 shopping centre Is a 10-minute walk from the residence, which has the Real Madrid stadium and other amenities close by.

Seville investment:
A fully operational asset in Ramon Carande, Seville, was also purchased by Round Hill Capital in early June for €33m. Comprising 413 high-quality student-beds and common areas such as study rooms, gymnasium, and a rooftop with swimming pool, this residence is highly desirable to students. Located within a short walk of the two main city campuses of the University of Seville, and adjacent to the EUSA University, it is also a 10 minute walk to the historic city centre. Round Hill Capital plans to make significant improvements to the asset to ensure it delivers on its full potential, including the creation of new outdoor spaces and common areas.

Michael Bickford, Founder and CEO of Round Hill Capital commented: “The latest announcements highlight our commitment to deliver high quality accommodation in line with market demand, and firmly establishes Round Hill Capital as a leader in the European sector. Our 20 years of experience ensures we can deliver intelligent investments. With an integrated approach our on-the-ground teams are able to invest in and produce high quality accommodation that responds to the evolving needs of customers by creating smarter spaces through innovative technology. We look forward to announcing the next investments in the near future as we continue to expand our portfolio across Europe.”

Oscar Bernaldo de Quiros, Head of Southern Europe Investment at Round Hill Capital, commented: “We are pleased to expand our portfolio with CPP Investments in Southern Europe with these three investments, adding over 1,228 high-quality beds to our existing portfolio in Iberia and reinforcing our offer across the continent. We are continuing to seek out new opportunities across other key cities in Spain, Italy and Portugal to strengthen our presence across the region and build on our success.”

The PBSA investments are part of an innovative €1 billion+ European joint venture with Canada Pension Plan Investment Board (CPP Investments), forming one of the largest Pan-European student accommodation mandates in history.

Round Hill Capital’s international award-winning* operating platform, Nido Student, will mobilise and manage the recently acquired PBSA assets. Leveraging its decade of sector-specific knowledge and expertise, Nido has earned a market leading reputation for its focus on wellbeing, design, technology, and sustainability. Thanks to its continued on-the-ground research, Nido has become the preferred operator for pan-European student accommodation as it understands how to provide residents with a lifestyle that supports and builds positive communities.

The hotel in Madrid transaction was advised by Ashurst, Jose Antonio de la Torre and Gleeds on the buy side, with Mundhotel, Garrigues and JM Rodriguez Prada on the sell side. The forward funded PBSA Madrid investment was advised by Ashurst and Hill International on the buy side, with CJO and Savills on the sell side. The PBSA Seville transaction was advised by Ashurst, Deloitte and Hollis on the buy side, and BDO and Arcano on the sell side.