The Netherlands PGGM Infrastructure Fund has entered into a definitive agreement to acquire the leading Spanish student accommodation group RESA (Residencias de Estudiantes en España) from Greystar, AXA IM Alts and investors represented by CBRE Investment Management.

Under the partnership of AXA IM Alts, CBRE IM and Greystar during the 2017-2022 period, RESA has grown to become the largest student accommodation platform in Spain, with approximately 11,200 beds in 21 key student cities, including Madrid, Barcelona and Valencia, and expanded from 33 residences to 43 (40 are currently in operation and 3 are under development, with expected openings in 2024 and 2025).

PGGM believes the acquisition further strengthens its positioning within social infrastructure. PGGM’s Infrastructure Fund has a long track record in the student accommodation sector having built a strong and successful partnership with UPP in the UK for more than 10 years, PGGM being the majority shareholder at UPP with a 60 per cent equity stake.

Commenting, PGGM Infrastructure investment director, Stuart Bousfield, said: “RESA is Spain’s leading student accommodation portfolio, with more than 30 years of track record, an excellent management team in place and considerable growth potential in one of Europe’s most undersupplied student housing markets. It will provide stable and inflation-linked returns to our clients like pension fund PFZW."

Furthermore, PGGM head of PPP and social infrastructure investments, Natasha Mol-Knechtel, said: “Affordable and high-quality student accommodation is essential for a functioning education and social system and with the acquisition of RESA we are advancing our sustainable development agenda."

The deal comes after a structured process involving a large number of potential buyers. It is conditional upon obtaining merger clearance approvals from the Spanish Antitrust Authorities.

BBVA (M&A and Debt Advisory), Freshfields Bruckhaus Deringer (Legal), KPMG (Financial and Tax DD), and Savills (Technical) advised PGGM on the acquisition. Eastdil Secured (M&A), CBRE (Commercial), Garrigues (Legal and Tax), Deloitte (Financial), Arcadis (Technical) and Longevity advised AXA IM Alts, CBRE IM and Greystar on the sale.

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