The Swedish venture capital fund EQT bets on Spain to create a new portfolio of student residences. Through its real estate arm EQT Exeter will invest together with its Spanish partner Grupo Moraval in raising these assets in a portfolio that can exceed 500 million euros. Although that will be the initial investment and the joint venture plans to allocate more resources.
“The objective is to be as big as possible. Make a scalable model”, acknowledges Carlos Molero, general director of EQT Exeter in Spain, in a conversation with Five days. The Swedish fund created its real estate team in Spain in 2019 and has been looking for investment opportunities ever since. “We had very clear from the beginning at the strategy level that we wanted to be in the student residence business,” he clarifies.
The assets of the joint venture EQT and Moraval will operate under the new Nodis brand. These partners hope to have an initial capacity to create a portfolio valued at more than 300 million, to expand it in the short term to 500 million.
For now, this alliance has begun to develop a residence in Seville and another in Malaga. Although Molero explains that they intend to reach another Spanish geography. “Madrid, Barcelona, Valencia, Seville, Granada and Malaga are the main markets for university residences. We are going to position ourselves in two”, points out Álvaro Soto, CEO of Grupo Moraval.
This Spanish real estate developer is one of the main players in the construction of residences, since it currently has around 30% of the market share until 2022 of the new places in Spain.
The EQT and Moraval project in Seville and Malaga host approximately 1,150 beds. It is located in the vicinity of the Pirotecnia and Ramón y Cajal university campuses. Construction has already started and it is expected to be in operation for the academic year 2022/2023.
In the case of the Malaga property, with a capacity for 350 seats, it is located on the Teatinos campus of the University of Malaga and is expected to be operational in 2024/2025.