IPIM in partnership with Heed and Amro Partners secured development financing for their 221-bed PBSA development in Valencia with a €19.15m, 3-year development facility funded by FERED. This is the second loan facility extended between Fiera and an Amro-managed PBSA deal, following the completion of another prior development loan for Amro’s Alicante PBSA project in March 2024.
Amro Valencia Puerto is Amro’s second PBSA scheme in Valencia and tenth in Iberia, after making its first investment in 2012. The €30m (GDV) development, where construction commenced in April of this year and will be completed in December 2025, will be one of the most energy-efficient PBSA projects in the country.
For IPIM and Heed, this project represents the €25m Iberian Student Living Fund’s initial foray into the coveted Valencia student market and the fund’s second investment within Iberia. The first investment was a 151-bed student housing scheme also built to BREEAM “Outstanding” standards in Porto, Portugal also in partnership with Amro. The Porto asset completed construction in December 2023, welcomed its first residents in January 2024 and reached 95% leased earlier this month.
Amro Valencia Puerto is designed to reduce whole-life carbon emissions at the embodied carbon and operational phases as part of Amro’s net-zero strategy. Integrated passive strategies will be adopted for the fully-electrified development, with targeted certifications in recognition of its best-in-class ESG credentials including BREEAM Outstanding, EPC A++, Fitwel 3 Star and Platinum WiredScore – the highest possible standards.
The building will be operated by Amro’s student housing operating platform Amro Estudiantes and is located less than 15 minutes from The University of Valencia by public transport, where there are over 55,000 students. A further five universities are reachable in 30 minutes via public transport.
Richard Howe, Co-Head of Fiera’s European Real Estate Debt business, commented: “We are delighted to continue our relationship with Amro, through which we are lending to a market-leading sponsor and best-in-class real estate with the strongest ESG credentials. The growing weight of institutional capital in the Spanish PBSA market speaks to its attractive underlying fundamentals, where there is a structural undersupply of professionally managed and contemporary student housing against a backdrop of a growing student population, from a domestic and international standpoint.”
Raj Kotecha, co-founder and CEO of Amro Partners, commented: “Our ESG-focused strategy continues to attract the highest quality global lenders and we’re pleased to be working with Fiera Capital again to bring this BREEAM Outstanding new PBSA project to fruition. Demand for dedicated student accommodation in Valencia is extremely strong and we have a proven track record of delivering best-in-class PBSA assets in this exciting and vibrant city.”
Selina Williams, Executive Director of IPIM, commented: “Fiera Capital’s commitment to lend on IPIM’s first PBSA investment in Valencia is a testament to our shared recognition of the strong underlying fundamentals of the sector. The sustainability credentials and best-in-class lifestyle amenities will make this development a highly desirable option for students in Valencia seeking an unparalleled residential experience. We are delighted to be raising the bar for environmentally-responsible and community-focused student housing."
Gustavo Guimarães, Board Member of Heed Capital commented: "Heed Capital has taken another important step towards the development of a new student accommodation project in the city of Valencia, funded by one of our managed funds. The collaboration with IPIM, Amro and Fiera Capital represents a significant contribution to the success of this project and, undoubtedly, to the maturation of the local market."
Image provided by Monfort.
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