TPG Real Estate, the dedicated real estate platform of global alternative asset firm TPG and Round Hill Capital, have acquired a site comprising approximately 39,000m² of buildable area in central Lisbon, Portugal. The joint venture intends to develop high-quality, purpose-built student accommodation and residential apartments on the site. Financial terms of the transaction were not disclosed. The acquisition marks TPG Real Estate and Round Hill’s first joint transaction in Portugal.
Situated at Campo Pequeno in central Lisbon, the development will provide 390 purpose-built student accommodation beds and up to 250 residential apartments. The plans also provide for dedicated amenities and common areas for the students, as well as shared commercial space for all residents. Campo Pequeno is an established residential area that benefits from extensive neighbouring facilities and excellent transport links. The site is a short walk to the University of Lisbon central campus and other local universities, colleges and business schools, with easy access to the city’s historic centre and Lisbon Airport. Once completed, the student accommodation will be managed by Nido Student.
Michael Abel, Partner at TPG Real Estate, commented: “Driven by Portugal’s strong economy, we have witnessed increasing demand for high-quality, convenient, and centralized living spaces in Lisbon. We believe that TPG Real Estate’s deep sector experience, combined with Round Hill’s understanding of Europe’s residential and student housing sectors, will create an exciting partnership that uniquely positions us to take advantage of this market opportunity.”
Michael Bickford, founder and CEO of Round Hill Capital, said: “The acquisition of the development asset at Campo Pequeno is TPG Real Estate and Round Hill’s first joint transaction in Portugal and Round Hill remains committed to continuing to look to make further investments in student housing and residential property in line with our existing strategy and growth plans in the country and in other select European markets. Portugal is a market that Round Hill is focusing on with this acquisition and the announcement in June 2017 that we have committed €100m to develop a significant mixed-use development project in Porto. Works continue to progress well on this project that will comprise student housing and residential apartments, a supermarket, food court/restaurant area and office space, surrounded by significant open areas and green public spaces.”