Press Release<\/p>\n\n
<\/p>\n\n
Hines, the global real estate investment, development and management firm, has acquired a flex living complex with a hotel license in the city of Valencia through the Hines European Real Estate Partners III fund (HEREP III). The project will comprise 650 beds, which will form part of the firm\u2019s growing residential portfolio in Spain. <\/p>\n\n
ATDI, the real estate and logistics assets investment and management platform of the Atitlan business group, will play a key role as the lead developer in the project, which will be delivered on a turnkey basis. In addition to this operation, ATDI has over 1,500 units of flex living under development, having recently delivered its first complex with 300 units. <\/p>\n\n
This investment, advised by Garrigues, JLL, EY and Arcadis, will allow Hines to strengthen its portfolio of assets in Spain and expand its presence in the living segment beyond Madrid and Barcelona. Following the acquisition, work has already begun on the first phase. By its completion in 2027, the student accommodation platform Aparto (a subsidiary of Hines) is expected to take over management of the new centre in Valencia. <\/p>\n\n
Paul White, Senior Managing Director and Fund Manager of HEREP III<\/strong>, highlights:Since the launch of HEREP III, student housing has been one of our most conviction-driven strategies. We had the ambition to create one of the leading PBSA portfolios in Europe, so we are delighted to have taken this latest purchase in Valencia off the market, continuing the successful execution of this strategy. Creating new student accommodations in the most undersupplied markets and using Aparto\u2019s expertise to manage them on behalf of our investors encapsulates the best of Hines as an investor, developer and manager of prime European real estate. <\/em><\/p>\n\n Vanessa Gelado, Senior Managing Director and Country Head of Hines in Spain<\/strong>, notes:”Our expansion in Valencia reinforces our commitment to the living segment in Spain. The city, with its growing demand for quality accommodation and its international appeal, has become a key market for our investments. This project not only responds to the important need for a modern offer adapted to today\u2019s demands, it also positions Hines at the forefront of a sector with great potential for growth in one of the country\u2019s leading university cities”. <\/em><\/p>\n\n Agust\u00edn P\u00e9rez, CEO of Atitlan Real Estate Developments,<\/strong> underscores: <\/p>\n\n We are very proud of this project. It will have a great impact in the environment of the Polytechnic University, which up to now had been degraded and abandoned for many years. Thanks to the collaboration of a first-class operator, we are sure that this project will make a significant contribution to the revitalisation of this area in Valencia. <\/em><\/p>\n\n We also believe that it will help to alleviate the lack of a residential supply in the Caba\u00f1al area, given that part of the tourist and student demand that will be attracted by this complex now occupies residential units. We hope that projects like this will contribute to alleviating the housing problem that exists in the city, where we are committed to generating impactful proposals that benefit the entire community. <\/em><\/p>\n\n Strategic location and high standards of quality<\/strong><\/p>\n\n The asset will offer flexible accommodation for stays of varying lengths and has been designed to meet the needs of a wide target market, including both students and professionals of different types, thanks to its strategic location and exceptional setting. The centre will also provide comfortable accommodation for the families of patients admitted to the Malvarrosa Hospital, located in the vicinity of the asset. <\/p>\n\n The complex is located close to the Campus of the Polytechnic University of Valencia and the University of Valencia, two of the most important universities in the country, which together host around 70,000 students per academic year. Furthermore, its proximity to La Patacona beach, together with easy access and excellent public transport connections, makes it a privileged asset for tourists and visitors during the summer. <\/p>\n\n With over 19,000 m2 of gross floor area, the complex provides for a wide variety of services and amenities designed to meet the needs of diverse tenants (including study areas, a gymnasium, coworking areas, a cafeteria, meeting rooms, a cinema, laundry facilities, parking spaces and an outdoor swimming pool). <\/p>\n\n The variety of types of rooms seeks to cover the needs of any type of resident, with single, double, triple, apartment-type rooms, etc. planned for development. The project will be carried out in compliance with Hines\u2019s rigorous sustainability standards, with the goal of achieving operations with net-zero emissions. In addition, the aim is to obtain the BREEAM Excellent and WELL Gold certifications, thus guaranteeing a healthy environment that is conducive to the well-being of the occupants. <\/p>\n\n Aparto\u2019s growth in Spain<\/strong><\/p>\n\n The complex will be operated by Aparto, Hines\u2019s student residence operating platform, which manages two student residences operating in Barcelona: Aparto Pallars, inaugurated in September 2022, and Aparto Crist\u00f3bal de Moura, which opened its doors in January 2024, totalling 1,100 student beds between them. This portfolio will be expanded with a further 530 beds through a licensed hotel project under development at Porta Diagonal, scheduled for completion in early 2026. <\/p>\n\n The Valencia project will add a further 650 units, bringing the total number of beds to more than 2,200 and positioning Hines as a major player in the Spanish Living market.<\/p>\n\n Student accommodation, an attractive market in Valencia<\/strong><\/p>\n\n Valencia is the third largest city in Spain in terms of population and GDP, as well as in terms of number of students, with nearly 110,000. The number of students in the city has grown by an annual average of 2.3% in recent years. It is also the city with the second highest percentage of international students (14%), with a growth rate of 5.8% per year.1 <\/p>\n\n Valencia has a consolidated market for student residences, with major institutional players that have been present for years, although a large part of the supply (around one third) is made up of old and obsolete residences that no longer meet the needs of the current demand. Moreover, Valencia\u2019s current bed provision rate is significantly low (4.3%), below Barcelona and Madrid. Despite the expected addition of 2,400 new beds in the coming years, the student residence market in Valencia is expected to continue to experience a shortage of supply and quality, adapted to current needs.2 <\/p>\n\n Hines<\/strong><\/p>\n\n Hines is a leading global real estate investment manager. We own and manage 86.9 billion euros1 in assets across all property types and on behalf of a diverse group of institutional and private clients. Every day, our 5,000 employees in 31 countries build on our 67-year history to move the world forward by investing in, developing and managing some of the world\u2019s finest real estate. To learn more about Hines, visit www.hines.com and follow @Hines on social media. <\/p>\n\n \u00b9Includes both Hines\u2019s global organisation and RIA\u2019s AUM as of 30 June 2024.<\/p>\n\n Hines European Real Estate Partners III (HEREP III) <\/strong><\/p>\n\n HEREP III is a Luxembourg-based, euro-denominated closed-ended investment fund managed by Hines. The final closing was held in November 2023, raising over \u20ac1.6 billion in capital, ahead of the fund\u2019s target of \u20ac1.5 billion. The objective of HEREP III is to acquire a diversified portfolio of prime commercial and residential real estate investments in major European markets on behalf of institutional investors. The Fund has broad flexibility across all sectors, and the portfolio is primarily focused on deploying thematic investment themes in the logistics, housing, office and retail sectors, as well as creating value through active interventions by leveraging Hines\u2019s deep vertically integrated platform and its market-leading ESG credentials. The fund was renamed from Hines European Value Fund (HEVF) to Hines European Real Estate Partners (HEREP). HEREP III follows its predecessors HEVF 1 (2018) and HEVF 2 (2021) in continuation of Hines\u2019s flagship HEREP series in Europe. <\/p>\n\n Atitlan Desarrollos Inmobiliarios (ATDI)<\/strong><\/p>\n\n ATDI is the investment and management platform for real estate and logistics assets of the Atitlan business group. Currently, the platform is positioned as one of the most active groups on the Iberian Peninsula, focusing on four business lines: real estate developments; tertiary, industrial and residential real estate developments; asset management; and management of other real estate and logistics assets. <\/p>\n\n ATDI defines itself as a manager of real estate solutions for complex problems, thereby allowing it to have a positive impact on the environment and all its stakeholders.<\/p>\n\n Since its first project in 2010, it has invested more than \u20ac1.5 billion and has implemented over 150 projects. It currently has more than 450 properties under management. <\/p>\n\n For more information:<\/p>\n\n Daniel Santiago<\/p>\n\n (+34) 692 52 87 60<\/p>\n\n d.santiago@romanrm.com<\/a><\/p>\n\n Cristina Cervera<\/p>\n\n (+34) 669 04 92 17<\/p>\n\n